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2014 (10) TMI 27 - AT - Service TaxWaiver of pre deposit - appellant has rendered Business Auxiliary Services by agreeing to play for Kings XI Punjab, under a contract with Indian Premier League (IPL) - Appellant did not play any single match - Classification of service - Brand promotion service or Business Auxiliary service - Held that - Appellant herein was contracted by Kings XI Punjab for playing IPL matches. It is also undisputed that though the appellant was selected for playing, did not play a single match for Kings XI Punjab. We find that while introducing the Service Tax liability under the category of Brand Promotion Service, C.B.E. & C. has given certain clarifications - activity of Brand Promotion being a new activity, was liable to be taxed from 2010 and has specifically stated that the Business Auxiliary Service is a wider category and this kind of promotion of name and house mark will fall under the category of Brand Promotion Service and not under the category of Business Auxiliary Service. show cause notice which has been issued for the period 1-4-2010 to 31-3-2011, there is no payment received by the appellant from Kings XI Punjab. If that be so, the appellant has made out a prima facie for waiver of pre-deposit of the amounts involved. - Stay granted.
Issues:
Waiver of Service Tax, Interest, and Penalties under Sections 70, 76, 77 & 78 of Finance Act, 1994 for Business Auxiliary Services related to playing for Kings XI Punjab in IPL. Analysis: The appellant filed a Stay Petition seeking waiver of Service Tax, interest, and penalties amounting to Rs. 6,18,412 confirmed by lower authorities for rendering Business Auxiliary Services by agreeing to play for Kings XI Punjab in IPL from April 2008 to March 2011. The appellant's counsel argued that the appellant was contracted by M/s. KPH Dreams Crickets Pvt. Ltd. only for wearing clothing and using equipment supplied, not for playing matches, thus not falling under Business Auxiliary Services but under Brand Promotion Service as per Circular No. 334/1/2010-TRU. The counsel referred to a previous case with a similar issue where the extended period was not invoked, supporting the appellant's contention. The Departmental Representative reiterated lower authorities' findings, emphasizing the Board's circular on Brand Promotion Service. The Tribunal acknowledged that the appellant was contracted by Kings XI Punjab for playing IPL matches but did not play any match. The Tribunal referred to the Board's circular distinguishing between Business Auxiliary Services and Brand Promotion Service, highlighting that mere promotion of a brand without linking to a specific product or service falls under Brand Promotion Service taxable from 2010. As per the show cause notice for the period 1-4-2010 to 31-3-2011, no payment was received by the appellant from Kings XI Punjab, indicating a prima facie case for waiver of pre-deposit. Consequently, the Tribunal allowed the application for waiver of pre-deposit and stayed recovery until the appeal's disposal. In conclusion, the Tribunal granted the appellant's request for waiver of pre-deposit of Service Tax, interest, and penalties related to Business Auxiliary Services for playing in IPL matches for Kings XI Punjab. The decision was based on the distinction between Business Auxiliary Services and Brand Promotion Service, as clarified by the Board's circular, and the absence of payments during the specific period mentioned in the show cause notice.
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