TaxTMI 
TaxTMI 
TaxTMI 
2022 (10) TMI 141
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....o BCCI-IPL for sponsorship service in the month of September 2008. The appellant made further payments of same amount for the year 2008-09 and 2009-10. Against the said payment as being pointed out by BCCI-IPL, as an official partner of the league for the duration of the rights period i.e. from 07.05.2008 to 31.12.2012 according to which the BCCI-IPL has been granting Vodafone Essar the exclusive rights to use the rights during the rights period in relation to the advertisement and promotion of the brand Vodafone along, within the product category in India and the right to any Affiliates and or sub-licensees, whether in India or outside India to use right strictly in accordance with the terms of the agreement. The case of the department is ....
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....e appearing on behalf of the Revenue reiterates the findings of the impugned order. 5. We have considered the submissions made by both the sides and perused the records. 6. We find that the Revenue's contention is that the appellant is liable to pay service tax on the sponsorship service under reverse charge mechanism. For the ease of reference, the definition of 'Sponsorship Service' is given as under: "(zzzn) to any body corporate or firm, by any person receiving sponsorship, in relation to such sponsorship, in any manner, but does not include services in relation to sponsorship of sports events; From the above sub clause, it is clear that receipt of sponsorship service in relation to sports events was not included in the taxable ser....
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....f the Finance Act, 1994 (hereinafter referred to as the Act). 3. The provision enjoins levy of service tax on services provided or to be provided to anybody corporate or firm, by any person receiving sponsorship, in relation to sponsorship, in any manner, but excluding services in relation to sponsorship of sports events. 4. It is the admitted position by Revenue that appellants are sponsors of IPL League matches Revenue contends before us, reiterating the conclusion recorded by the adjudicating authority that IPL League matches in relation to which the appellants had provided sponsorship does not constitute sponsorship of sports events since: (a) a league match is not comprehended within the expression sports events; (b) there is a....
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.... nature of obtaining sponsorship rights for being designated as the exclusive Title Sponsor of the League by the BCCI IPL, which is not a sports event but a society registered under The Tamil Nadu Societies Act, 1975. 7. We confess our inability to comprehend the contrived reasoning recorded by the adjudicating authority It is not the assessees case that they were sponsoring BCCI/IPL. It is their contention as revealed from the show cause notices issued, the responses thereto, and the (illustrative) agreement dated 13.02 2008 (entered between the appellant in Appeal No. ST/627-629 of 2011 and the BCCI) that sponsorships are in relation to T-20 Cricket League matches to be held under the auspices of BCCI The sponsorship agreement confers c....
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....n is inapplicable. In the absence of ambiguity, the golden rule of construction namely a construction whereby the literal meaning corresponds to the legal meaning, must be adopted. 10. We find no justification for the adjudicating authority's assumption that since there is an underlying commercial element in the IPL events, the sponsorship, which is otherwise in relation to a sports event, is not so. In the absence of any limiting words or phrases in the provision (excluding sponsorship of sports events having a commercial purpose from the benefit of immunity to service tax), the adjudicating authority cannot engraft its own policy choices and preferences to the legislatively conferred immunity. 11. The expression sport is not defin....
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....made the payment to the BCCI IPL, not for a T-20 tournament of any cricket match but to BCCI IPL which itself is not a game. 15. The above analysis of the adjudication authority, creative as it goes, defies comprehension. On a true and fair analysis of the sponsorship agreement, that the sponsorship agreement is in relation to cricket tournaments conducted under the auspicious of BCCI IPL; that cricket is a sport and the tournament (league) by the nature of its process is a sporting event, is indisputable. To dissect the generic composition of the sponsorship agreement by reference to a circumstance that payments are made not to the T-20 tournament of cricket matches but to the BCCU IPL (which is not a game), is an extravagant and logical....