Service Tax
TRT-2025-
Cestat Chennai
Date:-20-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 20 February 2023
Parties: M/s. Tamil Nadu Cricket Association vs. The Commissioner of Service Tax
Facts –
- The Appellant, M/s. Tamil Nadu Cricket Association, provided stadium and support services for the conduct of the IPL cricket matches at Chennai, which, according to the Department, appeared to be rendering infrastructural support services and would fall under ‘Support Services of Business or Commerce’. The amount received from BCCI was considered to be received for such a business support service. The appellant had not paid Service Tax on such amounts received by them for the different periods.
- Show Cause Notices were issued to the appellant proposing to demand the Service tax along with interest and also for imposing penalties.
- Aggrieved by the above orders, the appellant is now before the Tribunal.
Issue –
- Whether the appellant is liable to pay Service Tax on the sum of Rs.10,00,00,000/- received from BCCI or not?
Orders –
- The Tribunal observed that the Department has not been able to produce any evidence to show that there was an understanding between the appellant and the BCCI for providing such service for consideration of Rs.10,00,00,000/-.
- Further, it is also established that the appellants had provided the Stadium to Chennai Super Kings and had received Rs.50,00,000/- per match, for which they have discharged Service Tax.
- The Tribunal stated that unless there is a service provided and a consideration received for the service that has been provided, there cannot be a levy of Service Tax.
- The Tribunal relied on the case of Commissioner of Central Excise, Jaipur-I v. M/s. Rajasthan Cricket Association (supra), wherein it was held that Service Tax cannot be demanded for the activity undertaken by M/s. Rajasthan Cricket Association observing that BCCI is not a commercial concern.
- There was no hesitation to conclude that the Department has failed to establish that the appellant has rendered a service falling within the definition of ‘Support Services of Business or Commerce’. Hence the present appeal filed by the applicant is allowed.
Download Case Law
