TaxTMI 
TaxTMI 
2024 (9) TMI 317
X X X X Extracts X X X X
X X X X Extracts X X X X
....1994 along with a penalty of Rs.30,000/- under Section 77 of the Act. The Ld. Commissioner, however, dropped the Service Tax demand amounting to Rs.17,12,27,323.80/- made in the Notice. 1.1. Against dropping of the above said demand, the Revenue is in appeal vide Service Tax Appeal No. 75952 of 2015. JSCA has also filed a cross objection to the appeal filed by the Revenue by way of Service Tax Cross Objection No. 75212 of 2016. 1.2. As all the appeals emanate from the same Order-in-Original, all the appeals are taken up together for decision by a common order. 2. The facts of the case are that JSCA are a non-profit, charitable institution engaged in promoting and controlling the sport of cricket throughout the State of Jharkhand. JSCA is established with the sole aim and objective of promoting, encouraging, organizing and controlling the game of cricket throughout the State of Jharkhand. The properties and management of the association is vested in the Board of Trustees / Committee of Management which acts for the attainment of the above said objective of the association. 2.1. JSCA is a Member of the Board of Control for Cricket in India (BCCI). BCCI draws up its income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2012) Sec.65(105)(zzzm)/ Sec.65(2) 2008-09 to 30-06-2012 7,59,779/- (Demand of Rs.27,77,292/- from 01-07-2012 to 30-09-2013 dropped) 2 Franchisee Service Sec.65(47) Sec.65(48) Sec.65(105)(zze) 2010-11 7,72,500/- 3 Club or Association Services Sec.65(25aa)/ Sec.65(105)(zzze) 2008-09 to 2013-14 1,09,819/- 4 Maintenance and Repair Sec.65(64)/ Sec.65(105)(zzg) 2011-12 & 2012-13 5,665/- TOTAL 16,47,763/- 3.2. The Ld. Commissioner has dropped the demand of Service Tax of Rs.17,12,27,323.90/-, the breakup of which is extracted below: Sl. No. Category of Services Section Period for which tax demanded Tax demanded from 2008-09 to 30-06-2012 1 Business Auxiliary Services Sec.65(19)/ Sec.65(105)(zzb) 2008-09 to 2013-14 20,38,30,377.10/- 2 Selling of Space for Advertisement Sec.65(105)(zzzm) 01-07-2012 to 30-09-2013 27,77,292/- 3 Renting of Immovable Property Sec.65(105)(zzzz) read with Sec.65(90a) 2010-11, 2012-13 & 2013-14 28,21,170/- 4 Event Management Services Sec.65(40)/Sec.65(105)(zu) 2008-09 to 2012-13 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....permitted / granted rights to the parties to put up their own displays / electronic scoreboards for advertisement inside the stadium, which cannot be subjected to Service Tax under Section 65(105)(zzzm) of the Finance Act, 1994 under the category of 'sale of space or time for advertisement service'. 4.2. Regarding the demand of Service Tax of Rs.7,72,500/- under the category of 'franchisee service', they have submitted that the said amount was received by them towards franchisee right for operating cricket team for three years in T-20 Jharkhand Premier League for the sole aim of promoting the game of cricket in Jharkhand; the said amount does not relate to provision of any franchisee service; no franchisee agreement was ever entered into between the parties for granting any representational rights to sell or manufacture goods or to provide services, and therefore there is no provision of 'franchisee service' within the meaning of Section 65(105)(zze) of the Finance Act, 1994. Accordingly, JSCA submits that the basic ingredients required to levy Service Tax under the category of 'franchisee service' are absent in this case. Hence, JSCA have prayed for setting aside the demand con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....egime also, in terms of Clause 10(b) of the Mega Exemption Notification No 25/2012-S.T. dated 20.06.2012, w.e.f. 01.07.2012 any service provided by a recognized sports body to another is exempted from levy of service tax; accordingly, it is submitted that the ld. adjudicating authority has rightly dropped the demand raised in the Notice under this category. (ii) Regarding the dropping of the demand under the category of 'event management service', JSCA submits that the subsidies received from BCCI are in the nature of grants in aid for providing any service in relation to management of any event as an "event manager". Accordingly, it is their submission that the ld. adjudicating authority has rightly dropped the demand raised under the category of event management service. (iii) Regarding the dropping of demand under the category of 'mandap keeper service', it is the contention of JSCA that they had leased corporate boxes, hospitality boxes, etc., to corporate houses for viewing international matches for a specified period (not for all matches). This amount collected is in the nature of 'entry fee' booked in advance to privileged buyers and hence, the said activit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ervice', the Revenue submits that the ld. adjudicating authority has failed to appreciate that the amount received by the JSCA for arranging, hosting and participation of various teams in different tournaments are related to organizing / conducting of different events as required and planned on behalf of the BCCI. They further contended that JSCA is not conducting such events on their own; these events are conducted by JSCA as per the schedule and requirement of the BCCI and as per the terms and conditions prescribed by the BCCI. Thus, Revenue submits that the activity carried out by JSCA squarely falls within the ambit of Service Tax under the category of 'event management service' as defined under Section 65(105)(zu) of the Act. The Revenue also points out that with effect from 01.07.2012, the said activity is neither included in the Negative List under Section 66D nor under the Mega Exemption Notification No.25/2012-S.T. dated 20.06.2012. 5.2. Regarding the dropping of demand under the category of 'mandap keeper service', the Revenue points out that the ld. adjudicating authority failed to appreciate that JSCA was receiving amounts towards providing corporate boxes with air c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cks and various items during the course of the cricket matches. They have also let out corporate boxes and hospitality boxes to privileged clients for international cricket matches. 7.1. We observe that the adjudicating authority has confirmed the demands under the following categories of services: (i) Selling of space or time for advertisement service (ii) Franchisee service (iii) Club or Association service (iv) Maintenance and repair service 7.2. In respect of the above demands confirmed in the impugned order, the appellant has contested the demands only on the grounds of Limitation and did not challenge the demand on merits. 7.3. In this regard, we observe that the demand has been raised in the notice on the basis of Annual Report for the year 2008-09 to 2013-14 which is published every year and the Ledger A/c maintained by them. When the demand is raised on the basis of the books of accounts maintained by the appellant, extended period cannot be invoked. This view has been held in the case of Commissioner of C.Ex. vs. Hindustan Cables Ltd. (2022) 382 E.L.T. 188(Cal.) wherein the Hon'ble Calcutta High Court has held that when Show Cause Notice issued is....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le service which gives such bundle its essential character; (b) if various elements of such service are not naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which results in highest liability of service tax. Explanation. - For the purposes of sub-section (3), the expression "bundled service" means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services." 7.6. From the above, we observe that all the services rendered by the appellant are naturally bundled together with the game of cricket. In the present case, we observe that promoting the game of cricket is the primary objective of the cricket association/JSCA and all the services rendered are in association with promoting the game of cricket. When matches are not played, all the services become irrelevant and JSCA earns money only when these services are provided during the course of cricket matches. Accordingly, we hold that JSCA has rendered 'bundled services' in connection with promoting the game of cricket. 7.7. Since services ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orate boxes, hospitality boxes, etc., to corporate houses for viewing international matches for a specified period (not for all matches). This amount collected is in the nature of 'entry fee' booked in advance to privileged buyers and hence, the said activity could not be treated as a 'service' under the category of 'mandap keeper service'. JSCA also submits that there is no exclusive letting out of the said corporate boxes, hospitality lounges, etc.; in the instant case, JSCA is neither a 'mandap keeper' nor are the corporate boxes 'mandaps'. Accordingly, we hold that the ld. adjudicating authority has rightly dropped the demand under this category. 8.3. Regarding the dropping of demand under 'renting of immovable property service', we observe that the 'letting out' of its ground was for playing cricket matches only with the aim of promoting the game of cricket in the State of Jharkhand; playing cricket cannot be considered as 'furtherance of business or commerce' as defined under Section 65(105)(zzzz) read with Section 65(90a) of the Act. Service Tax is leviable on rent received for letting out of immovable property for furtherance of commercial activities only; Further, land ....