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2023 (6) TMI 1081 - AT - Service TaxScope/levy of Taxable Service - sponsorship services - amount paid by the appellant towards sponsorship of cricket tournaments namely, ICC Cricket World Cup and Indian Premier League (IPL) - provisions created as well as the taxability of certain portions of services received in view of the provisions of Section 65(105)(zzzn) of the Act, prior to 01.07.2010 - penalty u/s 77 and 78 of FA, 1994 - extended period of limitation. Whether the sponsorship received is relating to sponsorship of sports events or not? - HELD THAT:- The appellant has sponsored IPL Cricket tournament and ICC Cricket World Cup during the impugned period. Thus, whether sponsoring of IPL and ICC Cricket World Cup can be equated with sponsoring of sports events or not is the issue involved for resolution of dispute in this appeal - the issue is no longer res integra and is settled in favour of the appellant. In many decisions of the Tribunal, it has been held that no Service Tax is payable on sponsorship of IPL and ICC cricket tournaments during the impugned period. In the case of M/S HERO MOTOCORP LTD VERSUS COMMISSIONER OF SERVICE TAX, DELHI [2013 (6) TMI 447 - CESTAT NEW DELHI], the Tribunal, Delhi has held that the expression “in relation to” has a very wide connotation and the assessee’s activity of sponsorship was in relation to sports events and so, not liable to Service Tax. The above decision has been affirmed by the Hon’ble Supreme court vide its order in COMMISSIONER VERSUS HERO MOTOCORP LIMITED [2015 (7) TMI 1163 - SC ORDER] and subsequently, followed by the Tribunal, Mumbai in VODAFONE CELLULAR LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-III [2017 (2) TMI 1152 - CESTAT MUMBAI] wherein it has been held that, for the period under dispute, no Service Tax demand on sponsorship of sports events can be fastened on the appellant. Thus, the issue in dispute in this appeal is squarely covered by the decisions discussed, the impugned order ordered to be set aside - the provisions made in the books of account by the appellant as per the GAAP towards sharing the expenditure on account of receipt of sponsorship services cannot be subjected to tax as the ingredients for levy of tax are not fulfilled in the absence of any provision of service and when payments were made only in relation to sponsorship of the IPL Cricket tournament. Extended period of limitation - penalties - HELD THAT:- As the appeal succeeds on merits, there is no need to examine the issue of invoking the extended period or imposition of penalties. Appeal allowed.
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