TMI Blog2008 (8) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... umar, Member (Technical) Shri J.K. Mittal, Advocate, for the appellant. Shri A.K. Madan, Authorized Representative (DR), for the Respondent. [Order per. Rakesh Kumar Member (Technical)] - The facts of the case are as under. 1.1 The Appellants by virtue of their agreement dated 22/05/03 with 'The Professional Golfer's Association of India' (hereinafter referred to as PGAI), are having all commercial rights including broadcasting right, advertising right, film video rights internet rights and merchandising rights in the events of PGAI and in return, as per clause 6 of the Agreement, the Appellants have certain obligations main obligation being finalizing with sponsors and gulf clubs to organize certain minimum number of gol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain consideration to PGAI as per Clause 12 of the Agreement against the commercial rights granted to the Appellants. As per Section 65 (41), 'Event Manager' means a person engaged in providing any service in relation to event management in any manner. By no stretch of imagination the Appellant can be treated as Event Manager under Section 65 (41) of the Finance Act, 1994 and hence liable to pay service tax. (ii) Even if it is assumed that the Appellant are organizing the events for PGAI, even then neither PGAI is making any payment to the Appellant for the same, nor PGAI has authorized any other person to make payment to the Appellant. On the contrary, it is the Appellant who have to pay certain consideration to PGAI terms of Clause 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the sponsors. 3. We have given careful consideration to the submissions from both the sides. There is no dispute about the fact that the golf tournaments were organized by the Appellants the point of dispute is whether the tournaments were organized for PGAI or for the body corporate who sponsored the tournaments or were organized by the Appellants for themselves. 3.1 On going through the agreement between the PGAI and the Appellant it is seen that as per Clause 6 of the Agreement- "TSM, in return for the right to market the Commercial Rights on the PGA of India Golf tour, undertakes to finalize with Sponsors and Gulf Clubs to organize the Tour consisting of minimum number of events, as specified below and guarantee that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, have provided the event management service to themselves and therefore, the same would not attract any service tax. In fact, the service provided by the Appellants to the companies sponsoring the tournament, is similar to 'Sponsorship service' which became taxable w.e.f. 18/04/06. 4. In view of the above discussion, we hold that no 'event management' service has been provided by the Appellant either to PGAI or to the companies/body corporate sponsoring the golf tournaments and no service tax is payable by the Appellants on the amount received from the sponsoring companies. The impugned order is, therefore, not sustainable and the same is set aside. The appeal is allowed. (Pronounced in the open court on 01/08/2008.) - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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