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TMI Blog2012 (7) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... r favour against the demand of service tax under the category of ‘Intellectual Property Right Services'. Regarding Broadcasting Services - horse race club - licensed book makers (bookies in short) accept bets from public - Club conducts live telecast of races which can be viewed from other racing clubs in India – Held that:- Duty demand is for the period 01.04.2007 to 31.03.2009, they will not be, prima facie, liable to service tax during this period and would come under the service tax net only from 2010 onwards. Regarding Business Support Services - horse race club - licensed book makers (bookies in short) accept bets from public - Club conducts live telecast of races which can be viewed from other racing clubs in India – Held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in Mumbai and Pune is provided by M/s. Essel Shyam Communications Ltd., NOIDA. For such broadcasting, the Turf Club receives royalty income from other racing clubs and the royalty amounts are worked out either on fixed percentage of betting placed at the respective clubs or a fixed lump sum amount depending upon the understanding made with the respective race clubs. The Turf Club also receives royalty from caterers who have been permitted to use the infrastructural facilities and to operate within the premises of Turf Club. 2.1 Four show-cause notices were issued to the Turf Club for the period 01.04.2002 to 31.03.2009 demanding service tax on the amounts received by the Turf Club from the bookies, caterers and also from other race ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Intellectual Property Right Services'. As regards the royalty amount from the caterers the same was treated under the category of 'Business Support Services'. The show-cause notice was adjudicated by the Commissioner of Central Excise, vide Order No. 23/BR-23/ST/TH-1/2010 dated 31.03.2010 wherein the Commissioner confirmed the demand classifying the services under Broadcasting Services', Intellectual Property Right Services' and Business Support Services' under Section 73 of the Act ibid along with interest under Section 75 and imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994. 2.3 Two more show-cause notices were issued on 03.10.2008 and 09.10.2009 for the Financial Year 2007-08 and 2008-09 demanding service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre Services . The CBEC vide a Circular No. 109/3/2009-ST dated 23.02.2009 further clarified that Business Support Service' is a genetic service of providing support to the business or commerce of the service receiver. In other words, the principal activity is to be undertaken by the client while assistance of support is provided by the taxable service provider. Similarly as regards for demand of service tax under the category of Intellectual Property Right Services', he relied on the Circular of the CBEC No. 80/10/2004-ST dated 17.09.2004 wherein it was clarified that the Intellectual Property Right Services' covers such rights as patent, copy rights, trademarks and designs under the Intellectual Property Rights laws applicable in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty rights involved in the transactions i.e. whether it is a patent, copy rights, trade mark or design or any other category of intellectual property rights. If service tax has to be demanded and confirmed under the category of Intellectual Property Right Services' both the show-cause notices as also the order confirming the demand thereon, should clearly categorize the transactions under one or more of the Intellectual Property Right' which are covered under Intellectual Property Right Services law. The Board's Circular issued on 17.09.2004 in this regard makes it abundantly clear that the Intellectual Property Rights Services' covered under the service tax laws should be in respect of such services in respect of which laws have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch services would come under the category of services of permitting commercial use or exploitation and such services would be taxable only from 2010 onwards and not prior to that. In the instant case as the duty demand is for the period 01.04.2007 to 31.03.2009, they will not be, prima facie, liable to service tax during this period and would come under the service tax net only from 2010 onwards. As regards the department's claim for service tax under the category of Business Support Services' we find that this Tribunal in the case of Madras Race Club cited (supra) has clearly held that neither of services rendered by the race course to the book makers will come under the category of Business Support Services . Even though the said orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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