2012 (12) TMI 114 - AT - Service Tax

Display of the latters logo/marks/sign on the uniform of the cricketers - Player of cricket received fees from M/s. Royal Challengers Sports Pvt. Ltd. for playing IPL (Indian Premier League) tournaments - Royal Challengers were the franchisee of the Board of Control for Cricket in India (BCCI). - Held that - It is evident from the records of this case that the contentions raised by the assessee in his replies to the show-cause notices were not heeded by the adjudicating authority which chose to rely on Wikipedia and other materials without referring to the contentions of the assessee. It appears, to Wikipedia was elaborately referred to in the impugned order without putting the assessee on notice, which by all means amounts to violation of natural justice. Further, the case of department considered by the learned Commissioner mainly based on the MoUs executed by Royal Challengers with the owners of logo/mark/sign which were displayed by the cricketer on his uniform during the course of the tournaments, but no copy of any such MoU was supplied to the assessee, nor even mentioned in the list of relied upon documents attached to the show-cause notices. This is yet another instance of denial of natural justice to the appellant. Matter remanded back for de novo adjudication in accordance with law.

Issues:
1. Waiver of pre-deposit and stay of recovery sought by the appellant.
2. Demand of service tax and penalties for the periods 2008-09 and 2009-10.
3. Allegations of rendering Business Auxiliary Service (BAS) by the appellant through displaying logos on cricket uniform.
4. Adjudicating authority's failure to consider appellant's contentions leading to violation of natural justice.
5. Comparison with a similar case involving foreign cricketers and the requirement of pre-deposit.
6. Decision on remanding the case for de novo adjudication.

Analysis:

1. The appellant filed applications seeking waiver of pre-deposit and stay of recovery regarding adjudged dues. The Tribunal decided to summarily dispose of the appeals after dispensing with pre-deposit.

2. The appeals were against demands of service tax and penalties for the periods 2008-09 and 2009-10. The Department framed a case against the appellant for recovery of service tax under BAS on fees received from a cricket franchisee for playing in IPL tournaments.

3. The Department alleged that the appellant rendered BAS by displaying logos on the cricket uniform, which were considered as advertising the products of commercial establishments. The appellant contended that playing cricket did not attract service tax and claimed benefits under the Finance Act, which were not considered by the adjudicating authority.

4. The adjudicating authority failed to consider the appellant's substantive contentions and relied on external sources like Wikipedia, leading to a violation of natural justice. The appellant's arguments were not given due consideration, necessitating a remand for de novo adjudication.

5. The Additional Commissioner argued for a pre-deposit based on a different case involving foreign cricketers, but the Tribunal found the present case distinct. The appellant's grievances were considered forceful, and it was noted that natural justice was denied by not providing copies of relevant documents like MoUs.

6. The Tribunal set aside the impugned orders and allowed the appeals by remanding the case for de novo adjudication. The Commissioner was directed to pass speaking orders considering all contentions of the appellant and providing copies of relevant documents for further submissions.

This detailed analysis covers the issues of waiver of pre-deposit, demand of service tax, allegations of BAS, violation of natural justice, comparison with a similar case, and the decision to remand the case for fresh adjudication.

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