Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 567 - CESTAT CHENNAILevy of Service Tax - Brand Promotional Activities or not - amounts received from M/s.India Cements Ltd. under the IPL Playing Contract entered by the appellant with M/s.ICL as well as the BCCI - HELD THAT:- From the agreement, it can be seen that the appellant is under the control and supervision of the M/s.ICL during the period of agreement. The appellant is restricted from playing cricket match for any other team. So also, it is obligatory for the appellant to inform any medical condition which affects his ability to play. The appellant has to undergo medical examination as required by M/s.ICL. Again, the appellant is under obligation to attend training, coaching etc. These terms of the contract strongly indicate that the contract is in the nature of an employment contract. Though the appellant may be an independent professional player his services are taken up by M/s.ICL for playing IPL under the team ‘Chennai Super Kings’. So also, the remuneration paid to the appellant is fixed. If he is not able to play by reasons stated in the agreement, the appellant is to be compensated and thus is taken care of by M/s.ICL. Even though the appellant takes part in the promotional activities, the remuneration received remains fixed and is not based on the profit earned by M/s.ICL from such advertisements - The appellant is hired to play cricket and has not been hired to do only the promotional activities. The appellant being a professional cricketer, M/s.ICL has hired the appellant to play cricket which is the dominant activity of the contract. Merely because the appellant engages in some promotional activities of the employer, as part of playing cricket by way of wearing the shirt showcasing the logo and name of M/s. ICL etc., it cannot be said that the entire payment is for brand promotional activities. The Tribunal in the appellant’s own case CCE & ST, CHENNAI VERSUS L. BALAJI, S. BADRINATH, DINESH KARTHICK, MURALI VIJAY, VIDYUT SIVARAMAKRISHNAN, ANIRUDA SRIKKANTH, SURESH KUMAR, YO MAHESH, HEMANG BADANI, ASHWIN R,C. GANAPATHY, ARUN KARTHIK KB, KAUSHIK GANDHI, PALANI AMARNATH C, ABHINAV MUKUND (VICE-VERSA) [2019 (5) TMI 377 - CESTAT CHENNAI] while disposing a batch of cases had perused the agreement and held that it is in the nature of an employment contract - So also, in the case of YUSUFKHAN M PATHAN AND IRFANKHAN PATHAN VERSUS C.C.E. & S.T. -VADODARA-II [2023 (1) TMI 938 - CESTAT AHMEDABAD] the issue was analysed. The Tribunal held that the relationship between the cricket player and the franchisee is that of an employer-employee relationship. The demand of service tax cannot sustain and requires to be set aside. The impugned order is set aside - appeal allowed.
|