TaxTMI 
TaxTMI 
2008 (8) TMI 25
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....t, advertising right, film & video rights internet rights and merchandising rights in the events of PGAI and in return, as per clause 6 of the Agreement, the Appellants have certain obligations main obligation being finalizing with sponsors and gulf clubs to organize certain minimum number of golf tournaments and as per Clause 12 of the Agreement, paying certain consideration to PGAI. In other words, in return for the commercial rights in Golf tournaments granted by the PGAI to the Appellants, the Appellants have to find one or more sponsors, raise money from them for organizing the tournaments, organize certain minimum number of tournaments, and pay certain consideration, as detailed in Clause 12 of the Agreement, to PGAI. As per Clause 5 ....
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....e organizing the events for PGAI, even then neither PGAI is making any payment to the Appellant for the same, nor PGAI has authorized any other person to make payment to the Appellant. On the contrary, it is the Appellant who have to pay certain consideration to PGAI terms of Clause 12 of the Agreement. (iii) Sponsors have neither organized the tournaments nor has any control over such golf tournaments. Therefore the amounts received from the Sponsors can not be treated as the value of taxable service, as the same has not been received for rendering event management services. The Appellant can not be said to be organizing any event for the sponsors. Therefore the amount received from the sponsors cannot be subjected to service tax. (iv) ....
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....use 6 of the Agreement- "TSM, in return for the right to market the Commercial Rights on the PGA of India Golf tour, undertakes to finalize with Sponsors and Gulf Clubs to organize the Tour consisting of minimum number of events, as specified below and guarantee that the total prize money in the tour, from full field events as per fields determined by the TPC, which will count for inclusion in the money list, would be as set out below ." As per Clause 5 - "PGAI grants to TSM all commercial rights including broadcasting rights, advertising rights, film & video rights, internet rights and merchandising rights on the events forming the PGA of India Tour. TSM will also have the right to appoint a tour sponsor. Wherever a tour sponsor is appo....