TaxTMI 
TaxTMI 
2017 (6) TMI 637
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....p; Sponsorship services fall under Rule 3 (iii) of Taxation of Services (provided from outside India and received in India), Rules 2006 and appellant being recipient of service in India is liable to pay service tax under sponsorship services. 3 Membership of GSM Association 2008-9 to 2010-11 20,05,772 Club or Association Service falls Rule 3 (iii) of Taxation of Services (provided from outside India and received in India) Rules, 2006 and Appellant being allowed to use the trademark 'GSM' as GSM operator in India is liable to pay service tax in India under club or association service. 4 CCR of Towers and tower parts and services for construction of towers and shelters. 2008-09 to 30.9.2011 1,96,69,116 Towers/structure are immovable and hence not goods. Towers/structures and parts thereof are neither capital goods nor inputs. Constructed immovable property is neither subject to excise duty nor service tax and as such the input services used for construction of immovable property cannot be treated as input service for providing output service. 5 CCR of inputs and input services for constru....
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.... outside India, there is no question of levy of service tax thereon. To support this, he relied on the decision of the Tribunal in the case of Cox & King India Ltd.-2014 (35) STR 817 (Tri.-Del.). He also relied on the following decisions of the Tribunal: (i) SBI Cards and Payment Services Pvt.Ltd. vs. CST, New Delhi-2016 (41) STR 846 (Tri.-Del.) (ii) Grey Worldwide India Pvt.Ltd. vs.CST, Mumbai-2015 (40) STR 1104 (Tri.-Mum.) (iii) Foster Wheeler Energy Ltd. vs. CCE, Vadodara-II-2007 (7) STR 443 (Tri. Ahmd) Issue No.3. 5. For the membership fee paid to the GSM association, the contention of the learned Counsel is that the adjudicating authority has confirmed the demand of service tax under club or association services from GSM Association and the services rendered by club or association has been held ultra-vires by the Hon'ble Gujarat High Court in the case of Sports Club of Gujarat Ltd. vs. Union of India-2013-TIOL-528-HC-AHM-ST. Therefore, he submits that the service tax is not payable on this count. Issue No.4. 6. Learned Counsel for the appellant submits that they are entitled to avail credit in respect of towers, shelters e....
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....factory used for providing output service of leasing has been decided by Hon'ble Punjab & Haryana High Court in the case of Bellsonica Auto Components India P.Ltd.-2015 (STR 41 (P&H) held that the credit is available on construction services. Therefore, the demand is not sustainable. Issue No.6. 10. With regard to the credit on capital goods like chairs, furniture, it is the contention of the learned Counsel that the entire amount of have already been reversed and to that effect he has produced a copy of the challan. Issue No.7. 11. For the credit on the basis of invoices in the name of unregistered premises, he submits that there is no condition that the input should be received in the premises of the provider of the output service and Rule 3 provides that cenvat credit can be availed when the inputs and capital goods are received in the factory. However, similar restriction does not exist as regards the provisions of availing cenvat credit on input services. A service provider can avail cenvat credit of service tax paid on various input services as long as the said services are used by the service provider for providing the output service and the other....
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....e matches. The several rights accruing to the appellant under the sponsorship agreement (adverted to above) clearly indicate that sponsorship was neither of BCCI - IPL; nor GMR, the sponsorship was clearly of the GMR owned Delhi Daredevils team in relation to participation of such team in the IPL T-20 cricket tournament. The enumerated bouquet of benefits accruing to the appellant under the agreement such as printing; players appearances; motorcycle display; merchandise; motorcycle for promotion; and participative rights in prize presentation; championship tournaments; celebrity events; website/blog entitlement; and marketing plans by GMR, clearly establish that the sponsorship is of the GMR owned Delhi Daredevils team in relation to its participation in the T-20 tournament. 11. The sponsorship agreement is in our considered view a clear commercial transaction, the underlying purpose being the assumption that since BCCI-IPL-T-20 matches generate huge public viewership, either directly at the venues or through audio visual and print media as well, the appellant's association with the T-20 sports event through Delhi Daredevils team would showcase the appellant's presence in its cor....
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....tes sponsorship. That is also the admitted position, since that is the basis for initiation of proceedings leading to the assessment of the appellant's liability to service tax under provisions of Section 65(105)(zzzn). Since the sponsorship agreement, in our considered view falls within the exclusionary clause i.e. the clause which excludes sponsorship services in relation to sports events, the appellant is clearly immune to the charge of service tax. It is a settled principle of statutory construction that the phrase "in relation to" is indicative of expansive intention. As pointed out in Doypack Systems (Pvt) Ltd. v. Union of India reported in 1988 (36) E.L.T. 201 (S.C.). The expression "in relation to" is a very broad expression. These are words of comprehensiveness which might both have a direct significance as well as indirect significance depending on the context. The Supreme Court explained that the said expression connotes "concerning that" and "pertaining to", are expressions of expansion and not contraction. 17. The said issue was considered by this Tribunal in the case of Hero Honda Motors Ltd (supra) held that the assessee is not liable to service tax for sponso....
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.... transport other than in a tourist vehicle covered by a permit granted under the provisions of the Motor Vehicles Act, 1988 or the rules made thereunder, even if accompanied by services provided in the nature of planning, scheduling, organising or arranging tours (including provision of arrangements for accommodation, sightseeing or other similar services), would not be comprehended within the definition of "tour operator". (j) In respect of the services provided by the assessees for booking of passage for travel by air from India, they were assessed to and service tax levied and collected under the taxable category of "air travel agent". It is only in respect of services provided for outbound tours; at foreign locations and on the consideration received therefor, that the present proceedings relate to. On the authority of the precedents i.e. Ahmedbhai Umarbhai & Co. and Ishikawajma-Harima Heavy Indus. Ltd., it is clear that even composite transactions involving a raft of apparently taxable services are susceptible and ought to be, vivisected, to ascertain which of the services or components thereof fall within the ambit of the Act and which services ....
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....rdholder having normal residence in India is of no consequence for tax liability on service rendered and consumed outside India. The Tribunal's decision in Cox & Kings India Ltd. (supra) is applicable to the present case. The essence of taxability of service is that it should be taxed in the jurisdiction of its consumption. Here, the service, namely facility of use of card for payment, is rendered outside India and duly consumed by the recipient-cardholder outside India. We find service tax liability on such service is not sustainable for want of jurisdiction. Even if it is considered, conceding the plea of Revenue that the card is issued in India and the service availed abroad is in continuation of such card usage, it is clear that the identified service element has been wholly rendered and consumed abroad. As Hon'ble Supreme Court in the case of Ishikawa-Ima-Harima Heavy Industries Ltd. - 2007 (6) S.T.R. 3 (S.C.) held that in respect of offshore services, there should be sufficient nexus between the rendition of services and territorial limits of India. It was held that applying the principle of apportionment to composite transactions which have some operation in one territory an....
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....igh Court in the case of Bellsonica Auto Components India Pvt.Ltd. (supra) wherein the Hon'ble Hgh Court has allowed the credit on construction of office which were used for setting up of building which has further given on lease. Therefore, prima facie the applicant has been able to make out a case for complete waiver in respect of credit on construction of office premises. Issue No.6. Cenvat Credit on capital goods like chairs, furniture, etc. 25. We find that the applicant has reversed the credit of Rs. 13,20,327/- in respect of the capital goods, like chairs and furniture, therefore, the said reversal of cenvat credit is sufficient in terms of section 35F of CEA, 1944 read with section 83 of FA, 1944. Issue No.7. Cenvat Credit taken on the basis of invoices in the name unregistered premises: 26. We find that there is no such condition that the input should be received in the premises of the provider of the output service and Rule 3 of CCR, 2004 provides that cenvat credit can be availed when the inputs and capital goods are received in the factory. However, similar restriction does not exist as regards the provisions of availing cenvat credit on input serv....
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....s important to analyze the definition of 'input services' as contained in Rule 2(l) of Cenvat Credit Rules, 2004 which is herein reproduced. " "input service" means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal." Reading of the definition of 'input service' as provided above it includes all the services wh....