Order date – 02 November 2022

 Facts –

• The Respondent, M/s. Saurashtra Cricket Association, Rajkot, are engaged in conducting Cricket Matches of International level, National Level and State level at different places in Rajkot Region.
• The respondent is an Association registered under the Society Registration Act, 1860 and had conducted the different Inter District Tournaments matches and BCCI Tournaments Matches during the period from April, 2008 to January, 2009 at various places of Saurashtra-Kutch & Diu as per the direction given by the Board of Control for Cricket in India. 
• A show-cause notice was issued on the ground that the respondent were treated as Sponsor/organizer because they are not organizing the event themselves, but for the same, BCCI has appointed/ authorized the respondent to conduct and manage such events. Moreover, it further appears that the respondent is managing all the requirements namely Security, Rent-a-Cab, Photography, Pandal & Shamiana, Caterer, etc. which are supposed to be managed by an “Event Manager”.
• The adjudicating authority dropped the demand and aggrieved revenue filed an appeal.

Issue – 

• Whether amount received by the respondent for conducting cricket matches from the BCCI is subsidy or not?

Order – 

• The Tribunal observed that the respondent have received the subsidy against the expenses incurred for conducting Cricket Matches, therefore, by any stretch of imagination it cannot be said that the respondent has provided any taxable service to BCCI.
• The Tribunal also relied on the case of Vidharbh Cricket Association wherein it is held that sports organizations are not business or commercial organizations, conduct of sports or sporting events and their broadcasting/telecasting is not assertion of commercial rights. It thus clearly emerges that, the  service, if at all any, rendered by the appellant is not in relation to any business or commerce and therefore, there is no service tax liability on the said activity under Section 65(104c) read with 65(105)(zzzq) of the Finance Act, 1994.
• Considering the decision in the above case the tribunal held that in the case of the Cricket Association, subsidy received from BCCI was held to be non-taxable. 
• Revenue appeal is dismissed.