TMI Blog2012 (5) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... the said circulars in favour of the assessee. Prima facie, the existing provisions of Finance Act provide an exclusion of said cricket match etc. from ambit of service tax and legislative intent is there to amend the same so as to bring the same into service tax net. - Stay granted unconditionally. - ST/627/2011 - ST/S/77/12-CUS. - Dated:- 13-1-2012 - MRS. ARCHANA WADHWA, RAKESH KUMAR, JJ. ORDER Mrs. Archana Wadhwa, Judicial Member - The prayer in the application is to dispense with condition of pre-deposit of service tax of Rs. 4.94 crores and education cess of Rs. 9.60 lakhs and Rs. 4.80 lakhs which stands confirmed against the applicant/appellant and penalty of identical amount imposed upon the applicant under sections 78 of Finance Act, 1994. In addition a penalty of Rs. 5,000/- stands imposed upon the applicant under section 77 of the Finance Act. 2. After hearing both sides duly represented by Shri B.L. Narsimhan, learned Advocate appearing for the appellant and Shri K.P. Singh, learned SDR appearing for the Revenue, we find that the appellant entered into an agreement with BCCI-IPL dated 13.02.2008 and for title sponsor agreement wherein the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent squarely stands covered by the definition of sponsorship the service for the purpose of levy of service tax. 5. As regards, the appellant's contention that the sponsorship is in relation to sports events, he has observed that the sports events constitute games, matches or any tournament. The agreement entered into between appellant and BCCI-II cannot be held to be for sports events. For the above purposes, he has relied upon the instructions issued by the Board from Dy.No.42/Comm (ST)/2008, dt. 26.7.10. For better appreciation, the said instructions are being reproduced below:- "Prior to Finance Act, 2010 sponsorship service did not include "services in relation to sponsorship of sports events". On the basis of this exclusion service tax has largely not been paid on sponsorships that have been done under IPL. The standard argument is that the sponsorships contract falls within the exclusion clause. Show cause Notices have been issued in a few Commissionerate's. These notices seek to exclude sponsorship of a team from the scope of the exclusion clause. The argument taken is that the exclusion clause can be invoked only for sponsorship of "sports events" - a term which natura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that meaning of the expression - but not include services in relation to sponsorship of sports events." stands expressed by the Circular relied upon by the adjudicating authority. Inasmuch the legislative intent stands made clear in the Circular, the Commissioner was bound by the same and has rightly followed the same. 10. After careful consideration of the submissions made by both sides, we find that admittedly, sponsorship of sports event, is not covered by the definition of sponsorship appearing in the relevant provisions of the Finance Act. The adjudicating authority for arriving at finding against the appellant has simpliciter followed the Board's circular reproduced above. We fully agree with the appellant's plea that the Commissioner, as independent quasi-judicial authority was under legal obligation, independently was required to examine the issue before him instead of following the Board's circulars. It is only in respect of those circulars which are in favour of the assessee that the departmental officer cannot take view against the same and are required to follow the said circulars in favour of the assessee. 11. Hon'ble Rajasthan High Court in the case of Popular P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly and primarily for sponsoring the sport event conducted by the BCCI-IPL. We also find favour in appellants' contention that IPL was considered a cricket tournament, as is clearly shown in the official website of IPL and as such, has to be considered as sport event. Wherein official website of IPL refers to tournament as sport event and the same has even made it to fourth sport of the Forbes list of the World's hottest sporting properties. As such, prima facie, we agree with the appellant that the League is nothing but sport event organized by the BCCI-IPL and IPL is nothing but name of sport event. 15. We further note that exclusion clause used the expression 'in relation to' sport event. The expression 'in relation to' has been the subject-matter of the various decisions of the judicial as also quasi-judicial authority and has been held to be of wide connotation. As such, anything related to sport event is required to be considered as sport event and sponsorship of the same would get excluded from the definition of the sponsorship. 16. We may also take note of the TRU Circular dated 26.2.10 which explains the changes proposed in the Finance Bill of 2010 to the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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