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TMI Blog2024 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 of the Act. The Ld. Commissioner, however, dropped the Service Tax demand amounting to Rs.17,12,27,323.80/- made in the Notice. 1.1. Against dropping of the above said demand, the Revenue is in appeal vide Service Tax Appeal No. 75952 of 2015. JSCA has also filed a cross objection to the appeal filed by the Revenue by way of Service Tax Cross Objection No. 75212 of 2016. 1.2. As all the appeals emanate from the same Order-in-Original, all the appeals are taken up together for decision by a common order. 2. The facts of the case are that JSCA are a non-profit, charitable institution engaged in promoting and controlling the sport of cricket throughout the State of Jharkhand. JSCA is established with the sole aim and objective of promoting, encouraging, organizing and controlling the game of cricket throughout the State of Jharkhand. The properties and management of the association is vested in the Board of Trustees / Committee of Management which acts for the attainment of the above said objective of the association. 2.1. JSCA is a Member of the Board of Control for Cricket in India (BCCI). BCCI draws up its income and expenditure account annually and distributes a portion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .65(47) Sec.65(48) Sec.65(105)(zze) 2010-11 7,72,500/- 3 Club or Association Services Sec.65(25aa)/ Sec.65(105)(zzze) 2008-09 to 2013-14 1,09,819/- 4 Maintenance and Repair Sec.65(64)/ Sec.65(105)(zzg) 2011-12 & 2012-13 5,665/- TOTAL 16,47,763/- 3.2. The Ld. Commissioner has dropped the demand of Service Tax of Rs.17,12,27,323.90/-, the breakup of which is extracted below: Sl. No. Category of Services Section Period for which tax demanded Tax demanded from 2008-09 to 30-06-2012 1 Business Auxiliary Services Sec.65(19)/ Sec.65(105)(zzb) 2008-09 to 2013-14 20,38,30,377.10/- 2 Selling of Space for Advertisement Sec.65(105)(zzzm) 01-07-2012 to 30-09-2013 27,77,292/- 3 Renting of Immovable Property Sec.65(105)(zzzz) read with Sec.65(90a) 2010-11, 2012-13 & 2013-14 28,21,170/- 4 Event Management Services Sec.65(40)/Sec.65(105)(zu) 2008-09 to 2012-13 27,00,824.80/- 5 Mandap Keeper Service Sec.65(66)/Sec.65(67) Sec.65(105)(m) 2010-11 to 2012-13 25,41,834/- 21,46,71,497.90 Less: Service Tax paid 4,34,44,174/- Dropped Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e'. 4.2. Regarding the demand of Service Tax of Rs.7,72,500/- under the category of 'franchisee service', they have submitted that the said amount was received by them towards franchisee right for operating cricket team for three years in T-20 Jharkhand Premier League for the sole aim of promoting the game of cricket in Jharkhand; the said amount does not relate to provision of any franchisee service; no franchisee agreement was ever entered into between the parties for granting any representational rights to sell or manufacture goods or to provide services, and therefore there is no provision of 'franchisee service' within the meaning of Section 65(105)(zze) of the Finance Act, 1994. Accordingly, JSCA submits that the basic ingredients required to levy Service Tax under the category of 'franchisee service' are absent in this case. Hence, JSCA have prayed for setting aside the demand confirmed under the above said category of service. 4.3. Regarding the demand of Service Tax of Rs.1,09,819/- under the category of 'club or association service', JSCA have submitted that this demand has been confirmed on the Affiliation and Entry Fees received by JSCA from its members, under the cat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand raised in the Notice under this category. (ii) Regarding the dropping of the demand under the category of 'event management service', JSCA submits that the subsidies received from BCCI are in the nature of grants in aid for providing any service in relation to management of any event as an "event manager". Accordingly, it is their submission that the ld. adjudicating authority has rightly dropped the demand raised under the category of event management service. (iii) Regarding the dropping of demand under the category of 'mandap keeper service', it is the contention of JSCA that they had leased corporate boxes, hospitality boxes, etc., to corporate houses for viewing international matches for a specified period (not for all matches). This amount collected is in the nature of 'entry fee' booked in advance to privileged buyers and hence, the said activity could not be treated as a 'service' under the category of 'mandap keeper service'. JSCA also submits that there is no exclusive letting out of the said corporate boxes, hospitality lounges, etc.; in the instant case, JSCA is neither a 'mandap keeper' nor are the corporate boxes 'mandaps'. Accordingly, they submit that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that JSCA is not conducting such events on their own; these events are conducted by JSCA as per the schedule and requirement of the BCCI and as per the terms and conditions prescribed by the BCCI. Thus, Revenue submits that the activity carried out by JSCA squarely falls within the ambit of Service Tax under the category of 'event management service' as defined under Section 65(105)(zu) of the Act. The Revenue also points out that with effect from 01.07.2012, the said activity is neither included in the Negative List under Section 66D nor under the Mega Exemption Notification No.25/2012-S.T. dated 20.06.2012. 5.2. Regarding the dropping of demand under the category of 'mandap keeper service', the Revenue points out that the ld. adjudicating authority failed to appreciate that JSCA was receiving amounts towards providing corporate boxes with air conditioning, pantry services, attached toilet, television set, refrigerator and microwave; This facility cannot be considered as viewing of matches alone; rather, JSCA was providing services of mandap keeper of these well-equipped and furnished boxes for exclusive usage of the specified allotees. Accordingly, the Revenue contends that this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service (ii) Franchisee service (iii) Club or Association service (iv) Maintenance and repair service 7.2. In respect of the above demands confirmed in the impugned order, the appellant has contested the demands only on the grounds of Limitation and did not challenge the demand on merits. 7.3. In this regard, we observe that the demand has been raised in the notice on the basis of Annual Report for the year 2008-09 to 2013-14 which is published every year and the Ledger A/c maintained by them. When the demand is raised on the basis of the books of accounts maintained by the appellant, extended period cannot be invoked. This view has been held in the case of Commissioner of C.Ex. vs. Hindustan Cables Ltd. (2022) 382 E.L.T. 188(Cal.) wherein the Hon'ble Calcutta High Court has held that when Show Cause Notice issued is on the basis of book of accounts maintained by the assessee and not discovery of new facts by Department, extended period of limitation cannot be invoked. We observe that the same view has been held in the case of U.T Ltd. Vs. Commissioner of C.Ex. reported in (2001) 130 E.L.T 791 (Tri-Kol.), wherein it is held that when demand is based on balance sheet which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es wherein an element of provision of one service is combined with an element or elements of provision of any other service or services." 7.6. From the above, we observe that all the services rendered by the appellant are naturally bundled together with the game of cricket. In the present case, we observe that promoting the game of cricket is the primary objective of the cricket association/JSCA and all the services rendered are in association with promoting the game of cricket. When matches are not played, all the services become irrelevant and JSCA earns money only when these services are provided during the course of cricket matches. Accordingly, we hold that JSCA has rendered 'bundled services' in connection with promoting the game of cricket. 7.7. Since services rendered in connection with promotion of sporting events is exempted from the levy of Service Tax prior to 30.06.2012, no service tax is payable by the JSCA, being a charitable institution engaged in the activity of promoting the game of cricket. For the period after 01.07.2012, vide Mega Exemption Notification No 25/2012-S.T. dated 20.06.2012, exempts all the services rendered by JSCA in connection with sports from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, hospitality lounges, etc.; in the instant case, JSCA is neither a 'mandap keeper' nor are the corporate boxes 'mandaps'. Accordingly, we hold that the ld. adjudicating authority has rightly dropped the demand under this category. 8.3. Regarding the dropping of demand under 'renting of immovable property service', we observe that the 'letting out' of its ground was for playing cricket matches only with the aim of promoting the game of cricket in the State of Jharkhand; playing cricket cannot be considered as 'furtherance of business or commerce' as defined under Section 65(105)(zzzz) read with Section 65(90a) of the Act. Service Tax is leviable on rent received for letting out of immovable property for furtherance of commercial activities only; Further, land used for sports is not a commercial activity and letting out of such land cannot be subjected to Service Tax under the category of 'renting of immovable property service'. Accordingly, we hold that the service rendered in this regard by JSCA is not liable to service tax prior to 30.06.2012. W.e.f. 01.07.2012, under the category of 'declared services', the ground rent received for playing cricket, which is not in furtherance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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