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TMI Blog2024 (2) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... O MOTOCORP LIMITED [ 2015 (7) TMI 1163 - SC ORDER ] wherein the appeal filed by department was dismissed both on the ground of delay as well as being devoid of any merit. The impugned order is set aside - The appeal is allowed. - HON'BLE MR. SULEKHA BEEVI C.S., MEMBER ( JUDICIAL ) HON'BLE MR. C. L. MAHAR, MEMBER ( TECHNICAL ) For the Appellant : Shri Jigar Shah, Advocate For the Respondent : Shri P Ganesan, Superintendent (AR), Shri Anand Kumar, Superintendent (AR) ORDER SULEKHA BEEVI C.S. The appellant who was formally known as M/s. Paras Pharmaceuticals Ltd. are engaged in proving taxable services of advertising agency, market research agency, Business Auxiliary Service, transport of goods by road service and rendering immoveable property service for which they are registered with the Service Tax Commissionerate. It was observed that appellant had entered into a memorandum of understanding with Jaipur IPL Cricket Pvt. Ltd. executed on 14.11.2009. As per the MOU, M/s. Jaipur IPL Cricket Pvt. Ltd. (hereafter referred to as M/s. JIPL) has agreed to grant the appellant the rights as an associate sponsor for the Indian Premium League Season ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was of the view that the exclusion clause is invocable only in cases where services are provided in relation to sponsorship of sports event and as the appellant has not sponsored sports event but only sponsored the team the exclusion of the definition is not applicable. Show Cause Notice dated 16.05.2013 was issued for the period November 2009 to April 2010 proposing to demand Service tax under the category of sponsorship service along with interest and for imposing penalties. After due process of law, the Original Authority confirmed the demand, interest and imposed penalties. On appeal, the Commissioner (Appeals) vide order impugned herein upheld the demand, interest and penalties. Aggrieved the appellant is now before the Tribunal. 4. The Learned Counsel, Shri Jigar Shah appeared and argued for the appellant. It is submitted that the appellant entered into an arrangement with M/s. JIPL for the sponsorship in Indian Premium League for Rajasthan Royals. A memorandum of understanding was executed between the appellant and M/s. JIPL on 14.11.2009, wherein, the appellant was granted associate sponsorship rights as for the IPL Season 3 (2010) which was conducted from 12.3.2010 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided is whether the sponsorship fee paid by the appellant to M/s. JIPL towards grant of associate sponsorship rights of IPL team Rajasthan Royals for the IPL Season 3 (2010) is taxable under the category of sponsorship service as defined under section 65 (99) (a) read with Section 65(105)(zzzn) Finance Act, 1994. The relevant provisions have already been noticed above. The allegation in the Show Cause Notice is that the exclusion provided in Section 65 (105)(zzzn) is not available to the appellant as the sponsorship is for a sports team and not a sports event. The very same issue was considered by the Tribunal in the case of Hero Motorcorp Ltd. (supra) wherein it was held that the expression in relation to sports event has an extensive connotation and the sponsorship of a team of IPL has to be considered as sponsorship of sports event itself. The relevant paragraph reads as under: 2. These appeal are preferred by M/s. Hero Honda Motors Ltd., since re-designed as Hero Motorcorp Ltd., a company incorporated under the Companies Act, 1956. Appeals are preferred against a common adjudication order dated 30.06.2011 passed by Commissioner, Service Tax for the period 01.04.2008 to 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m in the IPL T-20 cricket tournament. the enumerated bouquet of benefits accruing to the appellant under the agreement such as printing; player s appearances; motorcycle display; merchandise; motorcycle for promotion; and participative rights in prize presentation; championship tournaments; celebrity events; website/blog entitlement; and marketing plans by GMR, clearly establish that the sponsorship is of the GMR owned Delhi Daredevils team in relation to its participation in the T-20 Tournament. 11. the sponsorship agreement is in our considered view a clear commercial transaction, the underlying purpose being the assumption that since BCCI-IPL-T-20 matches generate huge public viewership, either directly at the venues or through audio visual and print media as well, the appellant s association with the T-20 sports event through Delhi Daredevils team would show case the appellant s presence in its core business as a manufacturer of two wheeler motorbikes. It is neither the case of the adjudicating authority 34 as revealed in the adjudication order nor the case of Revenue before this Tribunal that the sponsorship agreement was entered into with GMR either to sponsor GMR or to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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