TaxTMI 
TaxTMI 
2023 (6) TMI 1161
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.... Board of Control for Cricket in India (BCCI). The tournament is popularly known as Indian Premier League (IPL). During the disputed period, the Service Tax Department initiated the show-cause proceedings against the appellants-assessee, seeking confirmation of service tax demands on various issues. The matter arising out of the show cause notices were adjudicated by the learned Principal Commissioner of Service Tax, Mumbai-IV vide Order-in-Original dated 24.06.2015 (for short, referred to as 'impugned order'), wherein the service tax demands were confirmed along with interest and also penalties were imposed on the appellants. The gist of the demands confirmed in the impugned order are summarised herein below in the form of a table:- No. Description Amounts in Rs. Demands as per 2 SCNs Demands Dropped in O-in-O Demands confirmed as per O-in-O Demands paid Appeal amount (1) (2) (3) (4) (5) (6) (7) Service Tax on revenue from BCCI A Service Tax on Central Rights Income earned from BCCI 16,71,71,797 - 16,71,71,797 - 16,71,71,797 Total 16,71,71,797 - 16,71,71,797 - 16,71,71,797 Service Tax under Reverse Charge Mechanism B ST applicability o....
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.... learned Advocate has relied upon the decision of this Tribunal in the case of KPH Dream Cricket Pvt. Ltd. (supra). 2.1 With regard to confirmation of service tax demand of Management Consultancy, Design & Advertisement services, the learned Advocate stated that the appellants-assessee is contesting the service tax demand for the period 2009-2010 on the ground that during such disputed period, the IPL was played in South Africa and not in India and since the entire services were provided outside the territorial territory, service tax demand cannot be fastened on the them. He has relied upon the decision of this Tribunal in the case of Genom Biotech Pvt. Ltd. Vs. Commissioner of Central Excise & Service Tax. Nashik - 2016 (42) STR 918 (Tri-Mumbai). 2.2 In response to the impugned order confirming the service tax demands on the fees paid to foreign coaches and supporting staff, learned Advocate submitted that the services are in the nature of commercial coaching and cannot be categorised as Business Support Service as per the definition contained under the Finance Act, 1994. He further submitted that since the Principal Commissioner himself as Adjudicating Authority has properly an....
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.... foreign players is taxable under the reverse charge mechanism ("RCM") as BSS on the basis that the players carry out promotional activities (incl. wearing uniforms with logos, etc.)? (iii) Whether payments made to foreign service provider for management consultancy services are taxable under RCM under taxing entry for Management or Business Consultant's Service? (iv) Whether costs incurred in marketing and PR activities outside India is taxable under the taxable service for BSS, on RCM? (v) Whether the appellants-assessee is required to reverse common CENVAT Credit availed for providing taxable and exempt output service? (vi) Whether 90% of payments made by Franchisee company to the foreign players is taxable under RCM as BSS on the basis that they carry out promotional activities (incl. wearing uniforms with logos, etc.)? (vii) Whether 100% of payments by the company to foreign coaches and support staff is taxable under RCM as BSS on the basis that they carry out promotional activities? 5.1. With regard to the first issue whether, receipt of the appellant's share in the Central Rights Income should be considered as consideration as provision of the Business Support ser....
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....26.07.2010, while dropping the demand on the balance 90% of fees attributing the same to sports activity of playing cricket. We find that the said issue has already been dealt with by the Co-ordinate Bench of this Tribunal, in the case of Sourav Ganguly Vs. Commissioner of Service Tax, Kolkata (Now Commissioner of Central Goods & Service Tax & Central Excise, Kolkata South), 2020 (12) TMI 534 - CESTAT Kolkata, wherein it was held that the view taken by the commissioner is not correct as the players had received the fees for the purpose of playing cricket only and even otherwise, it is a settled principle of law that if no machinery provision exists to exclude non-taxable service (playing cricket) from a composite contract, the same is not taxable since law must provide a measure or value of the rate to be applied and any vagueness in the legislative scheme makes the levy fatal. Thus, the Tribunal held in this case that the confirmation of demand could not be sustained. Considering that the ratio of the above decision squarely applies to the present case in hand, we are of the view that the confirmation of demand Rs.47,55,082/- towards fees paid to foreign players on RCM basis and R....
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.... which demands were raised relate to 2008-2009 and 2011-2012, much prior to the amendment to Section 67 introduced w.e.f. 14.05.2015. Hence, the confirmation of demand for Rs.38,31,865/- in respect of reimbursable expenses to foreign service provider on RCM basis cannot be considered as there exists no legal provision for charging to service tax on such reimbursement charges, we are of the view that such demand cannot be confirmed on the assessee-appellants. 5.4. As regards fourth issue, whether costs incurred in marketing and Public Relations activities conducted outside India would be subjected to levy of service tax, we find that the identical issue was considered by the Co-ordinate Bench of this Tribunal, in the case of KPH Dream Cricket Pvt. Ltd. Vs. CCE & ST, Chandigarh-I (viceversa), 2019 (5) TMI 1171 - CESTAT Chandigarh. Upon consideration of such issue, the Tribunal had held that the main object of the appellant-assessee is to promote game of cricket in India through IPL tournaments. For obtaining service of organizing the said tournaments cannot be treated a service is in nature of Business Support Service. Therefore, no service tax is leviable under the category of Busi....
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....ervice, no service tax is required to be reversed. Further, for the period 2010-12, the appellantassessee has also reversed the said amount, therefore, no demand is sustainable on that account. 35. In view of the above discussion, we hold that the demands of service tax are not sustainable against the appellant- assessee. Therefore, the demands confirmed by way of impugned order are set aside." Thus, the Tribunal held that the demand of service tax is not sustainable against the appellants. We also find that the explanation 3 to Rule 6(1) of the Cenvat Credit Rules, 2004 was amended vide notification No. 13/2016-C.E. (NT) dated 01.03.2016, wherein the 'exempted service' was expanded to include 'an activity which is not a service as defined under Section 65B (44) of the Finance Act, 1994' w.e.f. 01.04.2016, for which reversal of cenvat credit is required. Hence, prior to this there was no legal requirement legally binding an assessee to reverse cenvat credit of inputs or inputs services taken on such activities which are not services under the scope of the said Finance Act, 1994. Considering the above legal position in respect of Cenvat Credit Rules, 2004 and that the ratio of ....