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TMI Blog2024 (11) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant had also received certain capital equipment from BCCI. Under the mistaken belief that the capital equipment is additional subsidy/assistance from BCCI, the appellant paid service tax thereon. Later on, the BCCI informed that them the said capital received is part of the total subsidies/assistance from BCCI and not in addition to it. The appellant had also paid the service tax on "total subsidy". Later on BCCI raised debit note on the appellant. In respect of the value of the goods supplied as capital equipment. Consequently, the appellant took suo moto re-credit of the service tax paid on the capital equipment. 2.1 Learned Counsel pointed out that the issue is squarely covered by the decision of the Learned Commissioner Rajkot vide OIO No. 84/COMMR/2011 dated 26.12.2011. He pointed out that the said order has been passed holding that there is no service provider/service receiver relationship between BCCI and the cricket association. He pointed out that the said decision has been upheld by the Tribunal and appeal filed by the Revenue has been rejected as reported in 2023 (72) GSTL 93 (Tri.- Ahmd.), after following the view taken by the Tribunal Mumbai in the case of M/s. Vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been discharged. The appellant had received certain equipment from BCCI and under the impression that the said equipment is in addition to the grant given by the BCCI, the appellant discharged service tax thereon. Later on, when debit note was raised by the BCCI, the appellant released that the equipment received was part of the grant and not in addition to it and consequentially corrected the situation by taking re-credit of the service tax paid on capital equipment. In support of their contention a Chartered Accountant Certificate dated 28.02.2018 was produced which observes as follows: - "I have carefully examined the books of accounts, invoices raised, documents pertaining to capital equipment receipt, debit notes raised by BCCI on BCA and also sought suitable explanations from the concerned BCA representatives. This is to certify that BCA has been raising invoices on BCCI from time to time, and discharging appropriate Service Tax thereon. For the period from 1.7.2011 to 30.6.2017, they used to raise invoice and pay Service Tax while the remittances were received from BCCI as running payments from time to time later on. During the period 2013-14 BCCI had sent various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g TV rights of international matches and at the end of the financial year, the income earned by selling these rights are distributed among the affiliates and the formula for distribution is approved by the AGM . This amount has nothing to do with the organizing of any particular match by the affiliates and even associations who do not stage any match also receive subsidy from BCCI. (ii) Tournament receipts, reimbursement of players' expenses and payment of subsidy are made when their team participates in any tournament. This amount is paid to meet the expenses of travel, lodging, daily allowance payable to the members of the team. (iii) IPL subsidy is distributed to all affiliates out of the income generated from IPL events. Even when no IPL event is held, the affiliate gets the subsidy. For example in 2009 when IPL events were held in South Africa, each affiliate got a subsidy of Rs. 8,10,43,200/-. 5.5.2 The object of grant of subsidy as evident from BCCI's resolution is - (a) to promote the game of cricket in India; (b) to arrange, organize, control and finance the visits of Indian Cricket Team to other countries and visits of Cricket Teams of other countries to India; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asserting the right to make business out of it. The sporting organizations such as BCCI/CAB which are interested in promoting the sport or sports are under an obligation to organize the sports events and can legitimately be accused of failing in their to do so. The promotion of sports also includes its popularization through all legitimate means. For this purpose, they are duty bound to select the best means and methods to reach the maximum number of listeners and viewers. Since at present, radio or TV are the most efficacious methods, thanks to technological development, the sports organizations like BCCI/CAB will be neglecting their duty in not exploring the said media and in not employing the best means available to them to popularize the game. That while pursuing their objective of popularizing the sports by selecting the best available means of doing so, they incidentally earn some revenue, will not convert either them into commercial organizations or the right claimed by them to explore the said means, into a commercial right or interest. It must be further remembered that sporting organizations such as BCCI/CAB in the present case, have not been established only to organize ..... X X X X Extracts X X X X X X X X Extracts X X X X
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