TaxTMI 
TaxTMI 
2023 (6) TMI 1339
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....rnament is popularly known as Indian Premier League (IPL). The appellants-assessee are engaged in providing the services under the taxable category of 'management consultant service', 'sponsorship service' and 'Business Auxiliary Service', defined under the Finance Act, 1994. They are duly registered with the jurisdictional service tax authorities for providing such taxable services. During the course of audit under EA-2000, the officers of the Audit wing of the department had observed that for the period 2008-2009 to 2010-2011, the appellants-assessee have provided various taxable services to the BCCI for IPL Twenty-20 under a franchise agreement entered into between them and the BCCI. It was also observed that though the appellants-assessee have received certain amount from BCCI for providing the taxable service, but did not declare the said activities to the department and also did not reflect the transaction particulars in the periodic returns filed before the service tax department. On the basis of the above audit observations, the department initiated show cause proceedings against the appellantsassessee, seeking confirmation of the service tax demands along with interest and....
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....ices were provided outside the territorial territory, service tax demand cannot be fastened on the appellants-assessee. 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 analysed the statutory provisions vis-a-vis the activities undertaken by the appellant and dropped the proposed demand, and the impugned order to the extent it has dropped the service tax demand on such ground is proper and justified. 2.3 On the issue of reversal of cenvat credit in the context with production of music album, the learned Advocate submitted that the cenvat credit availed by the appellants-assessee has not been used, as the same is available in balance, as evidenced by the books of accounts, thereby not prejudiced the Revenue requiring payment of specified percentage of value of exempted services. Further, he plea....
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....nder the taxable service for BSS, on RCM? (v) Whether the appellant 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 Franchisee 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 appellantassessee's share in the Central Rights Income should be considered as consideration as provision of the Business Support service, we find that the said issue has already been dealt with by the Co-ordinate Bench of this Tribunal, in the case of KPH Dream Cricket Pvt. Ltd. Vs. CCE & ST, Chandigarh-I (vice-versa), 2019 (5) TMI 1171 - CESTAT Chandigarh. Upon consideration of such issue, the Tribunal by relying upon the decision of the Tribunal in the case of Mormugao Port Trust Vs. CCE - 2017 (48) STR 69 (Tri.-Mum.) has set aside the demand hold....
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....4 - 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 nontaxable 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 demand of service tax for Rs.47,91,703/- towards fees paid to foreign players and other professionals on RCM basis is not sustainable. 5.3. The third issue is relating to reimbursement charges paid by the appellants-assessee to M/s. EM Sporting Holdings Limited for providing professional, consultancy services proposed for levy of service tax as management or business consultant's service on RCM basis. We find that the said issue has already been dealt with by the Hon'ble Supreme C....
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.... Thus, we are of the view that such demand cannot be confirmed on the appellantsassessee. 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 Coordinate Bench of this Tribunal, in the case of KPH Dream Cricket Pvt. Ltd. Vs. CCE & ST, Chandigarh-I (vice-versa), 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 Business Support Service as discussed hereinabove in the preceding paragraphs, hence the demand of service tax is not sustainable. Further, the documents produced by the appellants-assessee indicate that the expenses incurred were on account of purchase of match tickets in UK, creation of DVD titled 'Rajasthan Royals road to victory' etc, which were reimbursed to the forei....
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....aid 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. 5.6. 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 the above decision squarely applies to the present case in hand, we are of the view that the confirmation of deman....