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2023 (8) TMI 1395 - AT - Service TaxLevy of service tax - Business Support Services or not - income received from BCCI-IPL as the share of central income is nothing but consideration for providing services to BCCI-IPL involving furtherance of business / commerce - sale of space or time for advertisement or not - sponsorship agreements entered into by the appellant with companies - reversal of CENVAT Credit as the appellant was engaged in providing taxable as well as exempted services on the ground that the income received by sale of tickets is exempted service - service tax on Business Support Services on reverse charge mechanism with respect to payments made to foreign players. Demand of Service Tax on the share of income received by the appellant from BCCI-IPL on Central rights - HELD THAT:- The very same issue was considered by the Tribunal in the case of KPH Dream Cricket Pvt. Ltd. [2019 (5) TMI 1171 - CESTAT CHANDIGARH] as well as in the case of M/S JAIPUR IPL CRICKET PVT. LTD. VERSUS PR. COMMISSIONER OF SERVICE TAX-IV, MUMBAI AND (VICE-VERSA) [2023 (6) TMI 1339 - CESTAT MUMBAI] where it was held that We also take note of the fact that BCCI is not commercial organization and only organizing game of cricket. Therefore any service rendered to BCCIIPL is not in the nature of support of business of BCCI. Therefore, on that ground also; no service tax is payable by the appellant-assessee - From the above decision, it can be seen that the income received by the appellant from Central rights is nothing but revenue sharing and not consideration for services provided to BCCI-IPL - the demand under this head cannot sustain and requires to be set aside. Demand of Service Tax under the category of sale space or time for advertisement - HELD THAT:- The appellant has entered into sponsorship agreements with various corporates. There is no liability to pay Service Tax on sponsorship of sports events till the year 2010. The period of dispute in the present appeals is prior to 01.07.2010. The very same issue was considered by the Tribunal in the case of Hero Motocorp Ltd. Vs. CST [2013 (6) TMI 447 - CESTAT NEW DELHI] and in the case of Hero Honda Motors Ltd., DLF Ltd. vs. CST, Delhi [2013 (4) TMI 428 - CESTAT NEW DELHI] where the demand was set aside. Reversal of CENVAT Credit - demand alleging that the appellant has provided exempted services in the nature of sale of tickets - HELD THAT:- The Tribunal in the case of KPH Dream Cricket Pvt. Ltd. [2019 (5) TMI 1171 - CESTAT CHANDIGARH] and M/S JAIPUR IPL CRICKET PVT. LTD. VERSUS PR. COMMISSIONER OF SERVICE TAX-IV, MUMBAI AND (VICE-VERSA) [2023 (6) TMI 1339 - CESTAT MUMBAI] had occasion to consider the very same issue and held that sale of tickets cannot be considered as an exempted service. The demand raised on this ground was set aside. Following the same, the demand cannot sustain and requires to be set aside. Liability to pay Service Tax under reverse charge mechanism on the payments made to foreign players - HELD THAT:- The very same issue was considered by the Tribunal in the case of KPH Dream Cricket Pvt. Ltd. [2019 (5) TMI 1171 - CESTAT CHANDIGARH] where it was held that on player’s fee, no service tax is payable -. The facts and issue being identical, the decision is applicable in the present case also. Following the same, the demand cannot sustain and requires to be set aside. There are no hesitation to conclude that the demand, interest and penalties cannot sustain. The impugned orders are set aside - appeal allowed.
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