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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 ..... ant in fact wants to add explanation to the following existing grounds of Appeal:- (a) that the extended period of limitation should not be invoked as there is no malafide. (b) the penalty levied should not be levied as there is no malafide and also there has been no intent to evade tax. (c) the interest demanded under Section 73 of Finance Act is not sustainable. 3. Shri G.R. Singh, Ld. DR has submitted that the Appeal is of the year 2015. It is pending for long. The appellant has not been vigilant for incorporating the additional grounds as prayed by the present Application. There is no reason for delay thereof as mentioned in the Application. Application is prayed to be dismissed. 4. After hearing both the parties and perusing the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Rs. 54,93,722/- (100% penalty on account of all the charges mentioned in the Show Cause Notice) vide the Order under challenge dated 20.07.2015. 7. The Ld. Advocate while challenging the said levy on account of alleged sponsorship service has relied upon Notification No. 15/2006-ST dated 24.04.2006 which came into effect on 01.05.2006 that the service provider of sponsorship service is under no obligation to provide anything in return to the sponsors. He also relied upon Rule (2d)(i)(C) of Service Tax Rules impressing upon that the person liable for paying service tax in case of sponsorship service is the recipient of such service. He also relied upon Notification No. 127/2006-ST dated 01.03.2006 vide which the organizers of sponsore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d above in (i) (iii) Penalty amounting to INR 54,93,722/- (100% penalty on account of all the charges mentioned in Para 1.2) It is observed that the tax amount relating to Club and Association Service, Convention Service and Import of Service amounting to INR 24,77,513/- were paid by the appellant on 01.04.2014. The Show Cause Notice was issued on 22.04.2014. Thus, the said payment of the service tax was much before the date of issuance of the Show Cause Notice. In the given circumstances, explanation to Section 73(3) of the Finance Act, 1994 becomes relevant which clarifies that no penalty shall be payable under any provisions of Finance Act, 1994 or the Rules made there under. In view of this provision, it becomes abundantly clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company's logo or trading name or giving the sponsor exclusive or priority booking rights. Service tax is leviable only when the sponsor is anybody corporate or firm. Sponsorship of sports events is excluded from the scope of this levy. Proposal is also to collect service tax under reverse charge method from the recipient of service namely the body corporate or firm who sponsors the event. It may be noted that the organizers of events are not liable to pay service tax under sponsorship service." 11. Keeping in view both these, i.e. the Notifications and Rule (2d)(i)(C) of Determination of Valuation Rules which reads as follows:- (d) "person liable for paying service tax",- (i) ........................................ (A) .......... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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