TMI Blog2012 (7) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of organizing matches is not taxable and part of this cost is recovered through gate collections. The appellants could not have taken cenvat credit on the input services availed by them for organizing matches. It is proper to call for a pre-deposit of Rs.18 lakhs on this count. - ST/Appeal No.354/2011 - ST/810/2011 - Dated:- 7-12-2011 - Archana Wadhwa, Mathew John, JJ. For Appellant: Shri J Vellapally, Sr. Adv. Shri Rajshekhar Rao, Adv. For Respondent: Shri R K Gupta, SDR Per: Mathew John: The appellants are one of the franchisees of BCCI-IPL T-20 Cricket Tournament. Their team is known by the name "Kings XI Punjab" and play in the IPL tournaments. There is an agreement between the two parties specifying the rights, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement between the appellants and CCI-IPL. So far, there has been only loss arising out of this activity. They had to bear such losses. His argument is that the payments made by BCCI cannot be considered as payments for services but only payment of of their share of receipts received centrally by BCCI. 3. In the case of Item No.2, the argument of the Counsel is that payment made by the appellant to the foreign players are basically fees for paying cricket and this cannot be considered as payment for any service to the appellants. He concedes that the players wear logos of different companies to promote the products of such companies and for that reason, there can be an argument that the payments made to the players were also for busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally for business than for promoting sports. At any rate, the services provided by them like recruiting players, staging matches according to the regulation by the BCCI, maintaining the team, etc are basically activities which promote business of the BCCI which makes huge profits by organizing these tournaments. It is his contention that the issue whether the appellant is making any profit at present or not, is not relevant for the service tax liability. Services are provided and payments are received for such services. So service tax should be payable. 8. In respect of Item No.2, the learned SDR submits that the appellants are in the business of playing cricket tournament and services of the foreign players are utilized for playing in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is situation at hand and there is no case for pre-deposit from the appellants on this account. 11. In the case payments made to the company in Sri Lank for signing up the foreign players, the service is classified by the impugned order in "Business Auxiliary service". For such classficiation, it is necessary to first conclude that players are providing input service to the appellant. This is an arguable matter. For the present, we are of the view that only about 10% of the payments made to players is for service rendered by them. So under this item also, it will be sufficient to call for a deposit of Rs. 1 lakh on this account. 12. In the case of payment made to the players, the appellant has a prima facie case. It is doubtful whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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