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TMI Blog2024 (9) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant, extended period cannot be invoked. This view has been held in the case of COMMISSIONER OF CENTRAL EXCISE, BOLPUR, COMMISSIONERATE VERSUS M/S. HINDUSTAN CABLES LIMITED. [ 2022 (6) TMI 709 - CALCUTTA HIGH COURT ] wherein the Hon'ble Calcutta High Court has held that when Show Cause Notice issued is on the basis of book of accounts maintained by the assessee and not discovery of new facts by Department, extended period of limitation cannot be invoked. The demands confirmed in the impugned order for the extended period of limitation is not sustainable. No penalty is imposable as suppression of fact with intention to evade the tax is not established in this case. Exemption from service tax - bundled services or not - game of cricket - HELD THAT:- All the services rendered by the appellant are naturally bundled together with the game of cricket. In the present case, it is observed that promoting the game of cricket is the primary objective of the cricket association/JSCA and all the services rendered are in association with promoting the game of cricket. When matches are not played, all the services become irrelevant and JSCA earns money only when these services are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n advance to privileged buyers and hence, the said activity could not be treated as a service under the category of mandap keeper service . JSCA also submits that there is no exclusive letting out of the said corporate boxes, hospitality lounges, etc.; in the instant case, JSCA is neither a mandap keeper nor are the corporate boxes mandaps . Accordingly, the ld. adjudicating authority has rightly dropped the demand under this category. Dropping of demand under renting of immovable property service - HELD THAT:- The service rendered in this regard by JSCA is not liable to service tax prior to 30.06.2012. W.e.f. 01.07.2012, under the category of declared services , the ground rent received for playing cricket, which is not in furtherance of business, is not taxable. In respect of the other services wherein demands were dropped by the ld. adjudicating authority, there are no infirmity in the dropping of the demand by the ld. adjudicating authority. All the said demands have been rightly dropped by the ld. adjudicating authority and thus, upheld - the demands confirmed by the ld. adjudicating authority in the impugned order set aside - Since the demand itself is set aside, the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, it was alleged that JSCA was liable to pay Service Tax of Rs.21,63,19,261.11/-on various income received by them. The break-up of the demand as per the Show Cause Notice is as under: - Sl. No. Category of Services Section Period for which tax demanded Tax demanded from 2008-09 to 30-06-2012 Tax demand from Jul 2012 to Sep 2013 Total Tax demanded 1 Business Auxiliary Services Sec.65(19)/ Sec.65(105)(zzb) 2008-09 to 2013-14 10,30,68,031.91 10,07,62,345.19 20,38,30,377.10 2 Selling of Space for Advertisement Sec.65(105)(zzzm)/ Sec.65(2) 2008-09 to 2013-14 7,59,779.50 27,77,292 35,37,071.50 3 Renting of Immovable Property Sec.65(105)(zzzz) Read with Sec.65(90a) 2010-11, 2012-13 2013-24 3,090 28,18,080 28,21,170 4 Event Management Services Sec.65(40)/ Sec.65(105)(zu) 2008-09 to 2012-13 22,34,605.60 4,66,219.20 27,00,824.80 5 Mandap Keeper Service Sec.65(66)/ Sec.65(67) Sec.65(105)(m) 2010-11 to 2012-13 20,394 25,21,440 25,41,834 6 Franchisee Service Sec.65(47), Sec.65(48), Sec.65(105)(zze) 2010-11 7,72,500 NIL 7,72,500 7 Club or Association Services Sec.65(25aa)/ Sec.65(105) (zzze) 2008-09 to 2013-14 91,064.68 18,753.83 1,09,818.70 8 Maintenance and Repair Sec.65(64)/ Sec.65(105)(z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1994 (hereinafter referred as 'Act') and the Rules made there under with deliberate and willful intent to evade service tax payable on the instant service. Hence, the extended period of limitation as envisaged in the proviso to sub-section (1) of Section 73 of the Act is invocable for suppression of facts with intent to evade payment of Service Tax . (iv) In the case of Commissioner of C.Ex. vs. Hindustan Cables Ltd. (2022) 382 E.L.T. 188(Cal.) it is held that by the Hon'ble Calcutta High Court that when SCN issued on the basis of book of accounts maintained by the assessee and not discovery of new facts by Department, extended period of limitation cannot be invoked. (v) In the case of U.T Ltd. Vs. Commissioner of C.Ex. reported in (2001) 130 E.L.T 791 (Tri-Kol.), it is held that when demand is based on balance sheet which is a published document, no intention to suppression fact can be imputed and extended period of limitation. Similar views have been expressed in the case of Rolex Logistics Pvt. Ltd. Vs. Commissioner of C.Ex.[2009 (13) S.T.R 147 (Tri-Bom.)] 4.1. In respect of the confirmation of demand of Rs.7,59,779/- under the category of sale of space of time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matches, they had collected labour charges, cleaning charges, etc., from the said teams. It is their contention that the said amounts were not collected by them in connection with management, maintenance or repair service. Accordingly, it is contended by JSCA that the demand confirmed under this category is not sustainable. 4.5. Regarding the dropping of the demands and the corresponding appeal filed by the Revenue, JSCA has stated the following: (i) The ld. adjudicating authority has dropped the demand raised under the category of business auxiliary service ; the amount received in the form IPL subvention/TV/Media Right (subvention) which were in the nature of subsidies , are not taxable under the category of Business Auxiliary Services as the said subsidies are not received for providing any service for the promotion, marketing or sale of any product or service for the client . The said subsidies were merely in the nature of grants-in-aid by the BCCI for promotion of the game of cricket in the State of Jharkhand; they are engaged in the promotion of game of sports which is neither product nor services . JSCA is affiliated and a member of BCCI and JSCA, in turn, has given affilia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submission that with effect from 01.07.2012, under the category of declared services , the ground rent received for playing cricket, which is not in furtherance of business, is not taxable. Accordingly, the ld. adjudicating authority has rightly dropped the demand under this category. 4.6. In view of the above submissions, JSCA has prayed for allowing their appeal and rejecting the appeal filed by the Revenue. 5. The Ld. Authorized Representative appearing on behalf of the Revenue reiterated the grounds of appeal urged by the Department. He submits that the ld. adjudicating authority has failed to consider that the amount received by the JSCA from BCCI on account of IPL subvention and media rights, shown in their ledger as Income for planning, organizing, promoting, presentation of cricket in the State of Jharkhand, were attributable to promotion and facilitation of service relating to cricketing events in the State of Jharkhand on behalf of the BCCI; the above activities squarely fall within the ambit of Service Tax under the category of business auxiliary service as defined under Section 65(105)(zzb)of the Finance Act, 1994. 5.1. Regarding the dropping of demand under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for setting aside the impugned order to the extent of dropping of the demands to the tune of Rs.17,12,27,323.90/-. The Revenue has also prayed for upholding the confirmation of the demands made by the ld. adjudicating authority in the impugned order. 5.4. In support of his contentions, the Ld. Authorized Representative for the Revenue relied upon the decision of the Tribunal in the case of Vidarbha Cricket Association v. Commissioner of C.Ex., Nagpur [2015 (38) S.T.R. 99 (Tri. Mum.)]. 6. Heard both sides and perused the appeal documents. 7. We observe that JSCA is a non-profit, charitable institution engaged in promoting and encouraging the sport of cricket in the State of Jharkhand. They have received grants-in-aid from the BCCI for the purpose of development of stadiums etc., in the State of Jharkhand and for promoting the game of cricket thereof. In the course of such promotion of the game of cricket, JSCA engaged in various activities to generate additional revenue. They have sold space for advertisement to various advertisers for displaying their advertisement during the course of such cricket matches. Similarly, JSCA have rented out stalls for the purpose of selling soft dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g any relation with the cricket matches, these services cannot possibly be rendered. Thus, we observe that all these services are required to be considered as bundled services provided in connection with promoting the game of cricket by JSCA. For the sake of ready reference, the definition of bundled services as provided under Section 66F of the Finance Act, 1994, is reproduced below: - SECTION 66F. Principles of interpretation of specified descriptions of services or bundled services. (1) Unless otherwise specified, reference to a service (herein referred to as main service) shall not include reference to a service which is used for providing main service. (2) Where a service is capable of differential treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. (3) Subject to the provisions of sub-section (2), the taxability of a bundled service shall be determined in the following manner, namely : (a) if various elements of such service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which gives such bundle its essential character; (b) if vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the game of cricket in the State of Jharkhand. The services rendered in connection with promotion of sports is not liable to service tax prior to 30.06.2012. For the period under the Negative List regime also, in terms of Clause 10(b) of the Mega Exemption Notification No 25/2012-S.T. dated 20.06.2012, w.e.f. 01.07.2012 any service provided by a recognized sports body to another is exempted from levy of service tax. Accordingly, we hold that that the ld. adjudicating authority has rightly dropped the demand raised in the Notice under this category. 8.1. Regarding the dropping of the demand under the category of event management service, we observe that the subsidies received from BCCI are in the nature of grants in aid for providing any service in relation to management of any event as an event manager . Accordingly, we hold that the ld. adjudicating authority has rightly dropped the demand raised under the category of event management service. 8.2. Regarding the dropping of demand under the category of mandap keeper service , we observe that JSCA had leased corporate boxes, hospitality boxes, etc., to corporate houses for viewing international matches for a specified period (not f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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