TaxTMI 
TaxTMI 
2015 (11) TMI 227
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....ts of World Cup, 2007 269040 32,963 1. World Sports Group Golf Tournament 88290375 1,08,17,419 1. Sponsorship Fees for Austria Cup 15209100 18,63,433 1. Total 57,68,64,328/- 7,06,77,958/- 2. 22.04.2009 (01.01.2008 to 31.01.2009) 59,37,505/- World Sport Group India Pvt. Ltd. Asian Tour 4,59,60,000 56,80,657 1. Asian Football Confederation Malaysia 7,00,000 86,520 1. Atlas Bangladesh (dealer advertisement) 5,83,796 72,157 1. Stafford Motor Co. Ltd., Sri Lanka (dealer advertisement) 7,94,264 98,171 1. Total 4,80,38,060/- 59,37,505/- 3. 23.03.2010 (01.02.2009 to 31.01.2009) 2,45,96,777/- International Hockey Federation 4,08,85,000 42,11,115 1. ICC Development International, Dubai 6,46,87,500 66,62,813 1. ICC Development International, Dubai 7,27,50,000 74,93,250 1. Asian Tour International Ltd. (World Sports Group India Pvt. Ltd.) 6,04,81,154 62,29,559 1. Total 23,88,03,654/- 2,45,96,777/- 4. 31.03.2011 (01.01.2010 to 31.12.2010) 20,21,450/- International Hockey Federation ....
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....and also supported by CESTAT judgement in the case of M/s. ZEE Telefilms Ltd. Vs. CCE (Appeals), Mumbai [2006 (4) STR 349 (Tri.-Mum)]. (vi) As regards the amount pertaining to Bangladesh dealer advertisement and Sri Lanka dealer advertisement, it was liable to tax under advertising agency service, therefore, the demand of Rs. 72,157/- and Rs. 98,171/- are sustainable. 4. Ld. Departmental Representative, on the other hand, contended that (i) the advertisement material has been defined in the agreement as under:- "Advertising Material - shall mean all advertising, communications and promotional material of whatever nature and in whatever media used or to be used by or on behalf of the sponsor in relation to the official sponsor rights (OSR)" In the terms of this agreement, it appears that the purpose of formulating the above terms is that during the course of cricket matches, the arrangement of whatever medium, will be for the purpose of display, for advertisement, for pronouncement, for name etc, relating to the product. The making of advertisement through any medium is a strong tool to promot....
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....l Partner shall provide to GCC samples of all approved Advertising Materials for its records, GCC shall have the right at reasonable times and places during business hours and on reasonable notice to the Global Partner to inspect the Advertising Materials during the Term. In the event that any Advertising Materials are manufactured, advertised or distributed by the Global Partner and are not approved in writing prior to such manufacture, advertising and distribution, or do not, in GCCs reasonable opinion, match the samples submitted as indicated above. The Global Partner undertakes that it shall discontinue such manufacture, advertisement and distribution immediately upon receipt of written notice from GCC." The above provision of the agreement with GCC shows that without the advice and approval by GCC, no advertisement could be displayed or exhibited and thus, the services provided by the GCC and others were in the nature of advertising agency service. 5. Both parties agreed during the hearing of the stay applications that as the case was covered by the judgement of CESTAT in the case of BCCI Vs. CST, Mumbai (supra), the appeals themselves could be disposed of and according....
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....vice" given in the Finance Act, 1994:- Section 65 (2) Advertisement includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas; Section 65 (3) Advertising agency means any [person] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant; Section 65 (105) (e) [to any person], by an advertising agency in relation to advertisement, in any manner; A perusal of the rights granted to the appellant under the sponsorship agreements reveals that these are agreements for sponsorship of various sports events and not for receiving advertising agency service. For example, the agreement dated 8.7.2002 between the appellants and Global Cricket Corporation Pvt. Ltd. (GCC) clearly shows that under the said agreement, on account of the global partnership fee paid by the appellant, GCC grants it global partnership rights on an exclusive basis within the brand sector only throughout the licensed territory subject to and in accordance with the provisions of the said agreement and applic....
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.... pertinent to note that "sale of space or time for advertisement and sponsorship services" was introduced with effect from 01.05.2006 without any amendment to the definition of advertisement agency or advertising agency service and therefore in the given circumstances, it cannot be asserted that it was part of the advertisement agency service prior to 01.05.2006 and was carved out of the scope thereof. Indeed, CESTAT judgement in the case of Glaxo Smithkline Pharmaceutical Ltd. [2006 (3) STR 71 (Tri.-Mum)] held that when the existing tariff definition remains the same, then the introduction of new tariff entry would imply that the coverage under the new tariff entry is an area not covered by earlier entry. 10. Our analysis and inference above are supported by CESTAT judgement in the case of BCCI Vs. CST, Mumbai, which inter alia observed as under:- "11. However, we also would like to deal with the scope of individual services provided by the appellant and alleged to be as advertising services. The Revenue has sought to tax the sale of telecast rights of cricket matches conducted by the appellant to various broadcasting agencies. We would like to ask ourselves a question....
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....soft drinks, the front side of the tickets and passes used for matches. As such, providing of space, without any connection with the work relating to the designing of preparation of advertisement would not bring them under the service tax net. In support of above submission, reliance has been placed on the Trade Notice No. 1/96-ST dated 31.3.2003, No. 54/301/03-ST dated 28.10.03 and Ministrys Letter No. 345/4/97-TRU dated 16.8.99, clarifying that canvassing with client to sponsor the event and persuade them to give advertisement in particular newspaper/periodical/magazine would not amount to rendering of services in connection with advertisement" As such, it is clear that what is being taxed is planning and expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression display or exhibit does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert body, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to in which manner, the advertisement s....