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2018 (12) TMI 1035 - CESTAT MUMBAIClassification of services - Import of service - Business Support Services or event management services? - event organized in Muscat relating to hiring equipment on rent for organizing the event in Muscat - it was alleged that the event organized by the appellant in UK and Muscat on 7.7.2006 and 24.4.2006 respectively was a part of their marketing strategy in promoting the channel and enlarge the subscriber base - reverse charge mechanism. Held that:- Undisputedly the appellant had paid the amounts of ₹ 1,36,99,550/- for organizing the events named as “ETC/Loomba Trust Bollywood Concert”. The amount paid to the overseas providers of said services was alleged by the Revenue to fall under the category of “Business Support Service” in as much as the services are in the nature of “Operational Assistance for Marketing” and liable to service tax under reverse charge mechanism under Section 66A of the Finance Act, 1994. The event was organized for the appellant by M/s. Concerto at UK, which involves various stages to make the event successful. The appellant paid service charges for undertaking the event by M/s. Concerto. Neither in the agreement nor in the invoices the object or purpose of the event reveals the role of M/s. Concerto was to promote the business or marketing of the appellant's channel. M/s. Concerto has carried out their job of organizing the event as per the agreement and the outcome of the event, whether increased customer base of the appellant or otherwise, is not their concern. The appellant had not received services under ‘Business Support Services’, but the service rendered by M/s. Concerto is correctly classifiable under Even Management Service and since the entire service is performed outside India, hence not taxable. Appeal allowed - decided in favor of appellant.
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