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TMI Blog2013 (8) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... the clear phraseology of section 105(65)(zzzn). The provision in issue excludes from liability to service tax, service in relation to sponsorship of sports event - the exclusionary clause admits of no ambiguity, grammatical, syntactical or contextual - legislature in its wisdom has considered it appropriate to extend the benefit of immunity to service tax, to the service of sponsorship in relation to sports events – In the absence of ambiguity, the golden rule of construction namely a construction whereby the literal meaning corresponds to the legal meaning, must be adopted – appeal allowed in favour of assessee. - Appeal No.C/384/2006-Cus - - - Dated:- 9-4-2013 - Mr. D. N. Panda and Mr. Manmohan Singh, JJ. For the Respondent: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication order is predicated fundamentally on the aforesaid premises of Revenue which are reiterated before us. 5. Sponsorship as defined in Section 65 (99a) includes activities of the assessees (appellants herein). This is not in dispute. 6. It is required to summarise the reasons recorded by the adjudicating authority for its conclusion that the transactions in issue fall outside the exclusionary clause of Section 65 (105) (zzzn). According to the adjudicating authority, BCCI/ IPL is not per- se a sports event. It is a society registered under The Tamil Nadu Societies Act, 1975, with which the assessees have entered into an agreement termed Title Sponsor Agreement. The adjudicating authority refers to a Circular dated 26.07.2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees assume would contribute to augmentation of their business by way of advertisement of their presence in the fields of their core endeavour and business. Inasmuch as the analysis by the adjudicating authority proceeds on the assumption that BCCI / IPL is not a sports event but a society registered under The Tamil Nadu Legislation, and the sponsorship agreements between the assessee and BCCI / IPL are thus not sponsorship in relation to sports event, this premise constitutes a fundamental fallacy, fatal to the impugned orders, of the adjudicating authority. 8. The adjudication authority s reasoning, that since what is sponsored by assessees are a series of league matches conducted by the BCCI/ IPL; these do not constitute sports ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n defines sport to mean inter alia, an activity that you do for pleasure and that needs physical effort or skill, usually done in a special area and according to fixed rules. The International Webster s Comprehensive Dictionary of the English Language 2003 Edition also defines sport analogously as a particular game or play, especially games, such as baseball, football etc. 13. It is not the case of Revenue that cricket is not a sport. What is creatively recorded in the adjudication order and reiterated in oral argument before us is that since the assessees sponsorship is of a league match , it is not sponsorship of a sports event. 14. The adjudicating authority (though a different incumbent of the authority) passed an order which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 16. On the analysis above we conclude that the several adjudication orders, impugned in these appeals are predicated on a raft of fundamental fallacies: (a) that sponsorship of a sports event, which has a commercial element (the IPL events) is disentitled to the benefits of immunity to service tax, notwithstanding the clear phraseology of section 105(65)(zzzn) of the Act; and (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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