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TMI Blog2012 (10) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... d Involved Service Tax Penalty Shri Irfankhan M Pathan 2008-09 (from 3.6.08) to 2010-11 Rs. 1,21,95,200/- Rs. 1,21,95,200/- u/s 78 Rs. 200/- per day u/s 77(1) Rs. 5,000 u/s 77(2) Shri Yusufkhan M Pathan 2008-09 (from 3.6.08) to 2010-11 Rs.65,59,040/- Rs. 65,59,040/- u/s 78 Rs. 200/- per day u/s 77(1) Rs.5,000 u/s 77(2) 3. Both the appellants are international cricket players and they had entered into contract with the cricket team owners (known as franchisee) whereby they were employed/engaged to play cricket for the respective teams in terms of the contract for IPL-1, IPL-2, IPL-3 seasons. The fees paid to the appellants has been held to be liable to service tax under the service category of "Business Support Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may not be covered since they were not promoting any particular brand. Further, he also relies upon the definition and clarification and Business Support Service to submit that the essential activity under Business Support Service is of outsourcing. 5. The ld. A.R. on the other hand draws our attention to the provisions in the contract which required appellants to participate in promotional/public events and failure to do so would attract deduction of 5% of player fee for each failure. He also submits that the contract specifically provides that the player is required to participate in at least ten such activities. He also submits that the contract also provides for deduction in player fee for failure to play in matches. The provisions rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eam Cricket Pvt. Ltd. and reported in cannot be applied since in that case Tribunal itself had observed that in the case of payment made to the players, the appellants have a prima-facie case. Further, he also submitted that the issue of limitation was not considered and in view of the technicalities involved in this case and the nature of dispute being purely technical, extended period could not have been invoked. Nevertheless, we have to take note of the fact that in the two decisions cited above, the service tax was demanded from the franchisees in respect of fee paid to foreign players by invoking reverse charge mechanism for recovering the service tax since the players involved were foreigners. Under these circumstances both the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit. The ld. counsel also submitted that the amount indicated by him is in fact pertaining to the last year of the contract and may not be fully covered but fairly admitted that he would not have any objection if that is considered. 8. After considering the facts and circumstances, the issue involved, the fact that entire amount cannot be and may not be considered as available for promotional events and also considering the fact that whether extended period can be invoked in these cases or not has to be considered in detail, we consider it appropriate that appellants deposit about 20% of the liability within the normal period. We quantify the same as Rs.7.5 Lakh in the case of Shri Irfankhan M. Pathan and Rs.3.5 lakh in the case of Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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