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TMI Blog2013 (4) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... ament of cricket matches but to the BCCI/ IPL (which is not a game), is an extravagant and logically misconceived analysis. Surely, it is not anybody’s case that the payments were made to BCCI/ IPL for the latters intrinsic brand image and not for or in relation to the tournament (T-20, which is the subject matter of the sponsorship agreement). The charging provision clearly excludes from chargeability to service tax, sponsorship in relation to sports events. The expression in relation to connotes activities associated with sports events. Sponsorship is not in relation to sports events, but is sponsorship of BCCI / IPL. No justification for the adjudicating authority’s assumption that since there is an underlying commercial element in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or firm, by any person receiving sponsorship, in relation to sponsorship, in any manner, but excluding services in relation to sponsorship of sports events. 4. It is the admitted position by Revenue that appellants are sponsors of IPL League matches. Revenue contends before us, reiterating the conclusion recorded by the adjudicating authority that IPL League matches in relation to which the appellants had provided sponsorship does not constitute sponsorship of sports events since: (a) a league match is not comprehended within the expression sports events; (b) there is a commercial element involved in IPL matches; and (c) IPL tournaments are in any event not sports events. The adjudication order is predicated fundamentally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a society registered under The Tamil Nadu Societies Act, 1975. 7. We confess our inability to comprehend the contrived reasoning recorded by the adjudicating authority. It is not the assessees case that they were sponsoring BCCI / IPL. It is their contention as revealed from the show cause notices issued; the responses thereto; and the (illustrative) agreement dated 13.02.2008 (entered between the appellant in Appeal No. ST/627-629 of 2011 and the BCCI) that sponsorships are in relation to T-20 Cricket League matches to be held under the auspices of BCCI. The sponsorship agreement confers certain participative and associative rights to the assessees in relation to the IPL events, which assessees assume would contribute to augmentation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the legal meaning, must be adopted. 10. We find no justification for the adjudicating authority s assumption that since there is an underlying commercial element in the IPL events, the sponsorship, which is otherwise in relation to a sports event, is not so. In the absence of any limiting words or phrases in the provision (excluding sponsorship of sports events having a commercial purpose from the benefit of immunity to service tax), the adjudicating authority cannot engraft its own policy choices and preferences to the legislatively conferred immunity. 11. The expression sport is not defined in the Act. 12. The Oxford Advanced Learner s Dictionary of Current English, Sixth edition defines sport to mean inter alia, an activity that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the adjudication authority, creative as it goes, defies comprehension. On a true and fair analysis of the sponsorship agreement, that the sponsorship agreement is in relation to cricket tournaments conducted under the auspicious of BCCI/ IPL; that cricket is a sport; and the tournament (league) by the nature of its process is a sporting event, is indisputable. To dissect the generic composition of the sponsorship agreement by reference to a circumstance that payments are made not to the T-20 tournament of cricket matches but to the BCCI/ IPL (which is not a game), is an extravagant and logically misconceived analysis. Surely, it is not anybody s case that the payments were made to BCCI/ IPL for the latters intrinsic brand image and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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