Order Date – 03 April 2023 

Parties: Ajitesh Kamlesh Argal Vs Commissioner of Central Excise & ST, Vadodara-I 

Facts –  

• The Appellants, Ajitesh Kamlesh Argal, a cricket player, received remuneration for playing cricket for a team owned by M/s. KPH Dreams Cricket Pvt. Limited, Chandigarh, Punjab (KPH for short). He also received a small consideration from M/s. Nike India Pvt. Limited for displaying their brand logo for promotion of their product. 
• It was alleged that the appellant has provided the service of brand promotion which falls under the category of Business Auxiliary Service and the same is taxable under service tax. Similarly, as regards the remuneration received from M/s. Nike India Pvt. Limited for participation in promotional activities, the demand of service tax was raised. 

Issue –  

• Whether appellants are liable to service tax remuneration and consideration received? 

Order –  

• The Tribunal observed that the major amount of remuneration received is towards engaging the appellant by KPH to play cricket in Indian Premier League matches.  
• In the identical agreements, assigned other players engaged by different teams, in all those cases, this Tribunal relying on the Calcutta High Court judgment in the case of Sourav Ganguly vs. UOI & Others – 2016 (7) TMI 237 – CALCUTTA HIGH COURT held that arrangement between the owner Company and the cricket player is of employment hence players are not directly involved in brand promotion of a brand owner. Therefore, the activity of the cricket player does not fall under the category of Business Auxiliary Services. 
• As per this settled legal position, in the present case also involving similar agreement and arrangement, the demand under Business Auxiliary Service does not sustain. 
• As regards the demand of service tax on remuneration received by the appellant from M/s. Nike India Pvt. Limited, it was observed that in this case the appellant is indeed involved in direct brand promotion for the brand owner.
• Accordingly, the impugned orders are set-aside and the appeals are allowed in the above terms. 

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