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TaxTMI 
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2026 (5) TMI 9
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....entral Excise, Customs and Service Tax Mysore. 2. The issues that have been raised in the impugned order are regarding whether the appellant has provided taxable services which are classifiable under the categories of Commercial Use or Exploitation of Event, Renting of immovable Property, Club or Association, Restaurant and Sponsorship services for the period from 01.04.2008 to 30.06.2012. 3. Heard both sides and perused the regards. 4. At the outset, we find the demand against 'Club or Association' services cannot be sustained as it is settled law that the appellant is not liable to service tax for the reason that the services rendered to themselves cannot be considered as a service for a consideration as is held by the Supreme Co....
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....rgued that the appellant receives a share of betting revenue from other clubs when they telecast the appellants races and vice-versa; also when the races of other clubs are telecasted in the appellants club. It is stated that this is a mutual reciprocal arrangement among race clubs under Turf Authorities of India and not a commercial service transaction. It is further stated that the betting revenue is subject to betting tax under the respective State Laws and referring to the Circular No.334/2010-TRU dated 26.02.2010, it is submitted that circular clarifies that in the case of commercial exploitations, after the rights are given, it results in provision of another taxable service such as broadcasting service or programme production service....
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....lly by other clubs and the consideration receipt for the centre activity is liable to service tax. Accordingly, we sustain the demand of service tax under this category. 5.4 In the case of Royal Western India Turf Club Ltd. vs. Commercial Service Tax, Mumbai 2015 (38) S.T.R. 811 (Tri. - Mumbai) dated 22.05.2012, wherein it is observed as: "5.4 The appellant herein is involved in conducting the event of "horse racing". The appellant has permitted other race clubs to commercially use or exploit this event. The appellant receives a royalty from these race clubs towards this right to commercial use or exploitation. Thus the activity undertaken by the appellant merits classification under the taxable category of "services of permitti....
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....les in force issued by the Government of Karnataka and as such, they obtain a licence to operate in the respective clubs. For undertaking their operations, they require a space and that space is provided by the appellant and in terms of this Betting Tax Act and Rules for which payment is received is not based on the area of the premises but based on the race being conducted; therefore, the payment received by the appellant cannot be considered as 'Renting of Immovable Property' as defined under Section 65(90a) of the Finance Act, 1994. 7. The third issue is regarding 'Restaurant' services and the allegation of the department is that there is an airconditioned food court in their premises for the benefit of the members, where food and bev....
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....occurs. Service tax can however be levied on the said transaction by the Parliament, which is competent to enact a law imposing Service tax. Hence, in the instant case, by virtue of the insertions of sub-clauses (zzzzv) and (zzzzw) to Clause (105) of Section 65 of the Finance Act, 1994, the Parliament intends to levy Service tax on those transactions relatable to service aspect and not on the aspect of sale of goods, which the Parliament is competent to do so. Therefore, there is no merit in the submission of the petitioners with regard to the competency of the Parliament to levy Service tax on the transactions referred to in the above sub-clauses. 32. In fact, a learned Single Judge of this Court in the case of Confederation of Re....
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.... of 'Restaurant Services'; hence, the demand under this category is upheld. 8. With regard to 'Sponsorship Service', it is alleged that since the appellant sponsored sports events, the same is liable to service tax. The appellant does not dispute the fact that these events are sponsored by them but plead bona fide belief that they were unaware of the fact that under reverse charge mechanism they were liable to pay service tax; however, claimed the benefit of Notification No.6/2005 dated 1.3.2005 (Small Services Provider exemption). Since there is no dispute about having sponsored the sports events, the appellant is liable to service tax as is held by the Commissioner in the impugned order. 9. With regard to limitation, it is submitted....