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2016 (8) TMI 90 - CESTAT CHANDIGARH

2016 (8) TMI 90 - CESTAT CHANDIGARH - TMI - Waiver of pre-deposit of demand of service tax - Business Support Service under franchise agreement with BCCI-IPL. - Central Right Income and various other activities - Held that:- rima face we find that the demand is not sustainable under Business Support Service under franchise agreement with BCCI-IPL. Therefore, waiver of pre-deposit of the demand of service tax of ₹ 8,23,55,893/- is granted during the pendency of the appeal. - With regard .....

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Cricket Board South Africa and Cricket Board Australia for playing the cricket in IPL on behalf of the applicant. The demand has been confirmed under the category of Manpower Recruitment or Supply Agency Service. As discussed in the preceding paragraph, the applicant is not a Manpower Recruitment or Supply Agency and under this head, service tax is not leviable. Therefore, prima facie, we waive the requirement of pre-deposit of ₹ 10,47,356/- during the pendency of the appeal. - Stay g .....

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ned order. The service tax demand has been confirmed against the applicant as per the details below:- S. No. Particulars Category of Service Demand confirmed (Rs.) period 1 Central Rights Income under the franchise agreement Business Support Service 8,23,55,893 2010-12 2 Players' fee paid for the overseas players Business Support Service (under reverse charge mechanism) 1,14,07,168 2010-11 3 Players' transfer fees received by the appellant for trading players Manpower Recruitment Agency .....

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IPL tournament. There is an agreement between two parties specifying the rights, liabilities, payments, etc. between the parties. On scrutiny of the agreement and books of accounts of the applicant, the Revenue is of the view that the applicant has to pay service tax on various activities arising out of agreement and the payment received from them. The demand of service tax has been sought to be confirmed as mentioned hereinabove. 3. Learned Counsel appearing for the applicant submits that they .....

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does not fall under the category of business support service. 4. For payment of players' fee paid to the overseas players, learned Counsel submits that in their own case for the earlier period, this Tribunal has directed them to make pre-deposit of 10% of the amount in dispute for business promotional activity. Therefore, he submits that the applicant is ready to pay 10% of payment of players' fee paid to the overseas players under reverse charge mechanism for entertaining their appeal. .....

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hat regard, the demand of service tax under the category of Manpower recruitment or supply agency service is not maintainable. 6. With regard to the Players Release Fee paid to the Cricket Board South Africa and Cricket Board Australia, the argument of the learned is that the applicant is not a Manpower Recruitment or Supply Agency, therefore, whatever fee paid to the respective boards do not qualify as Manpower Recruitment or Supply Agency Service. With these submissions, he submits that they a .....

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alifying under Business Support Service as well as Manpower Recruitment or Supply Agency Service. He submits that for the earlier period in the applicant s own case, the adjudicating authority has rightly demanded service tax from the applicant. 10. Heard the parties and considered the submissions and examined the adjudication order as well as records placed before us. 11. We find that in the applicant's own case for the earlier period, the demand was sought to be confirmed on account of Cen .....

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business venture where there may be loss or profit. The Board vide its Circular No. 109/03/2009-S.T., dated 23-2-09 in the case of film distributors and theatre owners exhibiting films on revenue sharing arrangement has clarified that neither party is providing service to the other. Prima facie, we are of the view that this clarification will apply to this situation at hand and there is no case for pre-deposit from the appellants on this account. 12. Therefore, prima face we find that the demand .....

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ct the applicant to make pre-deposit of ₹ 11.50 lakh at this stage. On such deposit the balance amount of service tax under this head is waived off during the pendency of the appeal. 14. With regard to the activity of Players' transfer fees received by the applicant for trading players, prima facie we find that the demand under this head has been confirmed under Manpower Recruitment or supply Agency service. Section 65 (68) of the Finance Act, 1994, defines Manpower Recruitment or Supp .....

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e of Arvind Mills -2014 (35) STR 496 (Guj.) wherein the facts of the case as under:- 3. Brief facts are that respondent had a composite textile mill and was engaged in manufacturing of fabrics and ready-made garments. In order to reduce its cost the respondent deputed some of its employees to its group company, who were also engaged in similar businesses. Reason for such deputation was also on certain occasions stipulated work arising for a limited period. The Tribunal recorded that there was no .....

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ervice tax. 16. In these set of facts, the Hon'ble Gujarat High Court has observed as under:- 6. We have to examine the definition of Manpower Supply Recruitment Agency in background of such undisputable facts. The definition though provides that Manpower Recruitment Supply Agency means any commercial concern engaged in providing any services directly or indirectly in any manner for recruitment or supply of manpower temporarily or otherwise to a client, in the present case, the respondent ca .....

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