2014 (12) TMI 495 - AT - Service Tax

Waiver of pre deposit - Commercial use or exploitation of any event service - Conduct of cricket matches - Held that - In any case it is not the appellant who is exploiting the IPL for commercial use. This is done by BCCI only. Appellant has a prima facie case in respect of this demand. appellants have either paid the entire amount due in respect of various services or have a prima facie case on merit in respect of others, In view of the above, we consider that the appellants have made out a case for waiver of pre-deposit and stay against recovery during the pendency of appeal - Stay granted.

Summary

Issues:
1. Service tax liability on various services provided during cricket matches.
2. Amount confirmed by the Commissioner and penalties imposed.
3. Dispute regarding the commercial use or exploitation of an event service.
4. Claim for waiver of pre-deposit and stay against recovery during the appeal.

Analysis:

Issue 1: Service Tax Liability
The appellant conducted cricket matches with club teams affiliated to the Hyderabad Cricket Association and also organized international test matches, one day international matches, and other tournaments. The Department assessed the activities under various service categories like Club or Association Service, Renting of Immovable Property Service, Business Auxiliary Service, Sale of space or time for advertisement service, and Support Services of Business or Commerce. The Commissioner confirmed a significant amount towards service tax liability under Section 73(1) and Section 75 of the Finance Act, 1994.

Issue 2: Confirmation of Amount and Penalties
The Commissioner passed an Order-in-Original confirming the service tax liability along with interest and imposed penalties under Section 77 and Section 78 of the Finance Act, 1994. The appellant had paid certain amounts against the confirmed demands for different services, citing reasons such as quantification errors or claiming treatment of amounts received as cum-tax benefits. The appellant contested the demands, especially regarding Club or Association Service and Renting of Immovable Property Service, citing legal precedents and discrepancies in the demands.

Issue 3: Commercial Use or Exploitation of Event Service
A substantial dispute arose concerning the commercial use or exploitation of an event service, particularly related to the IPL matches conducted in the appellant's stadium. The appellant received subsidies from the Board of Control of Cricket in India (BCCI) for hosting IPL matches. The appellant argued that they merely allowed the matches to be staged in their stadium and received subsidies from BCCI, which was responsible for exploiting the IPL for commercial use. The appellant claimed that they had a prima facie case in this regard, supported by the acknowledgment of service tax payment by BCCI.

Issue 4: Waiver of Pre-Deposit and Stay Against Recovery
Considering the payments made by the appellant against the demands and the prima facie case presented for certain services, the Tribunal found merit in the appellant's submissions. The Tribunal acknowledged that the appellant either paid the entire amount due for various services or had a strong case on merit for others. Consequently, the Tribunal granted a waiver of pre-deposit and ordered a stay against recovery during the pendency of the appeal.

This detailed analysis covers the key issues addressed in the legal judgment, focusing on the service tax liability, confirmation of amounts, disputes over specific services, and the decision regarding the waiver of pre-deposit and stay against recovery.