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TMI Blog2018 (9) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... ge Mechanism - N/N. 15/2006-ST dated 24.04.2006 - Held that:- The appellants were not liable to pay any service tax for rendering Sponsorship Service which was otherwise to be paid by the recipient under the Reverse Charge Mechanism - The liability qua Sponsorship Service was not sustainable. Appeal allowed - decided in favor of appellant. - Service Tax Misc Application No. ST/MISC/50575/2018 in Service Tax Appeal No. ST/53657/2015 [DB] - ST/A/52931/2018-CU[DB] - Dated:- 9-8-2018 - MR. C.L. MAHAR, MEMBER (TECHNICAL) And MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Present for the Appellant: Mr. Verendra Kalra, Advocate Present for the Respondent: Mr. G.R. Singh, DR ORDER PER: RACHNA GUPTA Arguments on the Miscellaneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of any delay is opined irrelevant for the purpose. We accordingly hereby allow the Application and allow the contents thereof to be treated as the part of the Appeal memo. 5. At this stage, parties reflected their consent for disposal of the main Appeal. Arguments accordingly heard. 6. Ld. CA for the appellant has submitted that the appellant is engaged in providing various services as that of Convention Services, Club and Association Services, Scientific Technical Consultancy Services and Sponsorship Services and are registered under service tax. During the audit of records for the period w.e.f. April 2008 to March 2013 it was found that the appellants had not paid service tax for providing the aforesaid services. Resultantly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly been dealt with by the Adjudicating Authority below where each alleged reliability has been discussed in detail. Justifying the said findings, even the findings qua imposition of the penalty to the extent of 100% amount demanded under various categories, ld. DR has prayed for the Appeal to be dismissed. 9. After hearing both the parties and perusing the record we are of the opinion that initially the Department raised a demand qua four different services as follows:- (i) Short payment of S. Tax on Club Association Service = INR 19,907/- (ii) Short payment of S. Tax on Import of Services = INR 2,19,660/- (iii) Short payment of S. Tax on Convention Services = INR 23,337,946/- (iv) Non-payment of S. Tax on sponsorship se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST dated 24.04.2006 reads as follows:- Sponsorship includes naming an event after the sponsor, displaying the sponsor s company logo or trading name, giving the sponsor exclusive or priority booking rights, sponsoring prizes or trophies for competition; but does not include any financial or other support in the form of donations or gifts, given by the donors subject to the condition that the service provider is under no obligation to provide anything in return to such donors. And Notification Nos. 1-7/2006-ST dated 01.03.2006, which reads as follows:- SPONSORSHIP SERVICE: Body corporate or firms involved in business or commerce sponsor events with an intent to obtain commercial benefit or bringing their name or products or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity below has committed an error while ignoring the relevant Notifications qua the Sponsorship Services while confirming the respective demand. We also observe that except the delay in payment, there is no other positive act proved nor even alleged by the Department to hold that the appellant had an intention to evade tax. On the contrary, the record is clarifying sufficiently that the appellants were under the bonafide belief of having no tax liability. The liability qua Sponsorship Service was otherwise not sustainable as discussed above. As a result, we set aside the Order under challenge. Consequently, the Appeal stands allowed. Consequential benefits, if any, shall follow. [Operative part pronounced in the open Court] - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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