TaxTMI 
TaxTMI 
2019 (8) TMI 1568
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....demand under BSS) 2. ST/20266/ 2014 4-4-2012 No. Hyd-EXCUS-002-COM-050-13-14, dated 30-10-2013 Oct., 2010 to Sept., 2011 61,69,447/- (demand under BSS) 3. ST/30352/ 2016 23-10-2013 No. Hyd-EXCUS-002-COM-064-15-16, dated 31-3-2016 Oct., 2011 to June, 2012 49,48,887/- (demand under BSS) 3. The facts in brief are as follows :- The appellants, M/s. Hyderabad Race Club are involved in providing the taxable services falling under Club or Association Membership Services w.e.f. 5-1-2006 and for providing renting of immovable property services w.e.f. 5-5-2009, since when they are registered for the same, under Service Tax. They are the company registered under Section 25 of Companies Act, 1956, in the State of Andhra Pradesh, with main object of carrying on the business of a Race Club in all its branches. 4. Department during the verification of books of account of the appellant, noticed that they have received amounts for various taxable services rendered by them. However, no Service Tax liability has been discharged. The details of various services rendered by them were observed as follows :- (i) M/s. HRC have rented out space/immo....
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....better at the "totalizator" which is a machine connected to a server. Betting can be done by the punters either at the said totalizator or with the "bookmakers". Bookmakers/Bookies are the persons, who are given license by the club to operate as book/bet at the races. They collect bids and pay prize money to the punters, who bet on winning horses. It is submitted that these book makers act independently and in a sense are the competitors to the appellant. 8. It is further impressed upon that as per the aforesaid regulations these bookies have to operate from the premises of the appellant and an enclosure, accordingly, is provided to the bookies in the appellant's club where the race is actually conducted in the appellant's premises or is telecasted in case the race is conducted in the club other than the appellant's club. The appellant charges fee from the bookies in two components one is fixed amount under the head "stall fee" and the other is a variable amount under the head "commission" which is the percentage of the betting amounts collected by such bookies. However, both these amounts are collected towards the stall fee only. It is submitted giving stalls on rent is not ....
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....ve activities under the respective category, i.e., BSS & RIPS qua caterers is alleged as highly unreasonable and accordingly, is prayed to be set aside. Learned Counsel has relied upon Royal Western India Turf Club Ltd. v. Commissioner of Service Tax, Mumbai reported in 2015 (38) S.T.R. 811 (Tri.-Mumbai) to impress that the issue is no more res integra. Board Circular No. 334/4/2006-TRU, dated 28-2-2006 and Circular No. 109/3/2009-S.T., dated 23-2-2009 is also relied upon. Appeals, accordingly, are prayed to be allowed. 12. While rebutting these arguments, it is submitted by the Ld. DR that admittedly the appellants are receiving two different amounts, one in the name of stall fee towards the enclosure/space provided by the appellant to their licensed bookies and another is the commission at the rate of certain percentage of the revenue collected. It is impressed upon that the said commission cannot be categorized as stall fee, as is submitted by the appellant, as the same is with respect to other support services, as that of auditing, facility of live telecast, facility of caterer, etc., being provided to the said licensed bookies in the appellant's club. Hence, the commissi....
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.... of this clause, the expression "infrastructural support services" includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security; [Section 65(104c) of the Finance Act, 1994] "Taxable Service" means any service provided or to be provided to any person, by any other person, in relation to support services of business or commerce, in any manner; [Section 65(105)(zzzq) of the Finance Act, 1994] 16. As per Section 65(105)(zzzz) of the Finance Act, 1994, the taxable service under the category of "Renting of immovable property service" - means service rendered to any person, by any other person by renting of immovable property or any other service in relation to such renting, for use in the course of or for furtherance of business or commerce. Explanation 1. - For the purpose of this sub-clause, "immovable property" includes - (i) building and part of a building, and the land appurtenant thereto; (ii) land incidental to the use of such building or part of a building; (iii) the common....
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....ing of immovable property as has been held in the case of M/s. Royal Western India Turf Club Ltd. (supra). It definitely amounts to Business Support Service. 18. The facts of the present case are different from M/s. Royal Western India Turf Club Ltd. (supra) case in the terms that of providing stall to the bookie in the club to be show cause notice in Royal Western India Turf case alleged this service to be taxable under the category of renting of immovable property, where the Tribunal held that it is more an infrastructural support than mere Renting of Immovable Property. In the present case, the show cause notice has been issued alleging that said service to be a Business Support Service. Hence applying the said decision, we hold that the appellant has wrongly interpreted the decision. No doubt, demand under renting of immovable property as far as the stall fee is concerned is not maintainable but the said demand is well maintainable under Business Support Service defined under Section 65(104c) of Finance Act, 1994. 19. Now coming to the demands with respect to the charges received by the appellant from the bookies in the name of commission, but for providing Inter-ve....
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....perty Right Service. But it is definitely a Business Support Service for the book-maker provided by the appellant club. Hence, we hold that demand has rightly been confirmed. 21. The Circular No. 334/4/2006, dated 28-2-2006 is also opined to have been wrongly interpreted. We are of the opinion that mere use of word "outsource" in that Circular does not alter the definition of Business Support Service as being given in the statute. Therefore, the argument of the appellant that if the bookmaker has not outsourced the services to the club, the services cannot be Business Support Service, is not acceptable. It has already been observed that the services which have been received by the bookmaker from the appellant club are the Infrastructural Support for which the appellant is receiving the stall fee and the support of accountancy, customer relationship punters being available to the book-maker within the appellant's Club), Inter-venue betting and the structural support in the form of live telecast for the same all combined together are definitely the Business Support Services being provided by the club to the bookmakers. Thus, we are of the firm opinion that the demands in hand ....