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TMI Blog2012 (11) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... f the races which can be viewed at other racing clubs in India located in Bangalore, Kolkata, Hyderabad, Mysore, Delhi, Madras and Ooty. The technical support for the live telecast of horse race events 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 race clubs and the royalty amounts are worked out either on a 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 the Turf Club. 2.1 Four show-cause notices were issued to the Turf Club for the period from 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 clubs. For the period from 01.04.2003 to 30.06.2006, a show-cause notice dated 26.03.2007 was issued demanding service tax of Rs. 1,19,61,049/- under two categories the royalty/commission received from other race clubs was classified as Broa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is in appeal before us against the impugned orders. 3. The Ld. Counsel for the appellant makes the following submissions:- (1) As regards the demand of service tax under the category of Business Support Services, this Tribunal in Madras Race Club vs. CST 2009 (14) STR 646 (T) had prima facie held that the amounts received from book makers by the Race Club does not come under the category of Business Support Services. (2) He also relies on the clarification issued by the CBEC vide Circular No. 334/4/2006-TRU dated 28.02.2006 wherein it has been stated that business entities outsource a number of services for use in business or commerce and these services include such as transaction processing, routine administration or accountancy, customer relationship management and tele-marketing, usually outsourced. In some cases, the business entities provide infrastructural support such as providing instant offices along with secretarial assistance known as Business Centre Services. The CBEC vide a Circular No. 109/3/2009-ST dated 23.02.2009 further clarified that Business Support Service is a generic service of providing support to the business or commerce of the service receiver. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asting the horse races conducted by the Turf Club for viewing by other race clubs located in various parts of the country and receipt of royalty for the same was brought under the tax net with effect from 1-7-2010 vide clause (zzzzr) of section 65 (105) of the Finance Act which defined the said service as - (zzzzr) taxable service provided or to be provided to any person, by any other person, by granting the right or by permitting commercial use or exploitation of any event including an event relating to art, entertainment, business, sports or marriage organised by such other person; Prior to 1-7-2010, the said activity was not taxable and the said entry was not carved out of any existing taxable services by amending the same. He relies on the judgment of this Tribunal in the case of BCCI vs. Commissioner of Service Tax, Mumbai [2007 (7) STR 384] and the decision of the Hon'ble High Court of Mumbai in the case of Indian National Ship Owners Association vs. UOI [2009 (14) STR 289]. In the light of these submissions, the ld. Counsel prays for setting aside the impugned orders and allowing the appeals. 4. The learned Commissioner (AR), on the other hand, reiterated the finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, copy rights, trade mark or design or any other category of intellectual property rights. When service tax is confirmed under the taxable service category of Intellectual Property Right Services, the order confirming the demand should clearly classify the transaction under one or more of the Intellectual Property Rights which are covered under Intellectual Property Right Services law. The Boards Circular issued on 17.09.2004 in this regard makes it abundantly clear that the Intellectual Property Right Services covered under the service tax laws should be in respect of such services in respect of which laws have been made in India and such laws should cover the Intellectual Property Right Services involved and only in such a situation, demand for service tax can be raised whenever there is a transfer of Intellectual Property Rights by the holder of the Intellectual Property Right to the person who receives or uses the Intellectual Property Rights. In the impugned orders we do not find any such findings by the authorities. 5.3 During the arguments, the ld. Commissioner AR gave up the claim under Intellectual Property Rights Services and stated that the activity of live telecast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sting sector, many individuals or organizations offer to share/part with these rights for a consideration. A corporate sponsored cricket match or company sponsored music concert; film award events; celebrities marriages; beauty contests are some of such private functions, which a large number of viewers like to see on TV or media. In such cases, companies, broadcasting agencies and video producers are given right to capture these events or programmes for their commercial exploitation in future. Often such commercial exploitation results in provision of another taxable service such as broadcasting service or programme production service. The proposed service now seeks to tax the amount received by the person or organization, who permits the recording and broadcasting of the event from the broadcaster, or any other person, who seeks to commercially exploit the event. 5.6 This Tribunal in the case of Board of Control for Cricket in India vs. CST 2009 (7) STR 384 (T) while considering the service tax demand on sale of television rights, sponsorship money and logo money by the Board of Cricket Control in India held that sale of such rights will not come under the category of advertisin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not come within the definition. Such providing of space should be along with other facilities specified therein. It is not the case of the department such facilities have been provided to the book makers or the caterer. Therefore, we do not find any merit in the argument that the renting of office space to the caterer/book maker is liable to be classified as business support service. 5.10 The CBEC circular 334/4/2006-TRU dated 28-2-2006 makes this position very clear as under:- "Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as Business Centre Services. It is proposed to tax all such outsourced services." It is not the departments case that the book makers and the caterer outsourced infrastructural support from the appellant Turf Club. 6. In the light of the above discussion, we do not find any merit in the impugned orders confirming service tax demand. Acco ..... 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