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TMI Blog2024 (11) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... nt took suo moto re-credit of the service tax paid on the capital equipment HELD THAT:- The appellant had received certain equipment from BCCI and under the impression that the said equipment is in addition to the grant given by the BCCI, the appellant discharged service tax thereon. Later on, when debit note was raised by the BCCI, the appellant released that the equipment received was part of the grant and not in addition to it and consequentially corrected the situation by taking re-credit of the service tax paid on capital equipment. Similar facts are mentioned in the statement of the Head of Account of BCCI. In the said statement against question No. 8, 9 and 10, Shri Vidyadhar Laxman Sahasrabudhe has observed that BCCI has debited an amount of Rs. 4.14 Crore from the account of BCA maintained by them by way of issuing debit note dated 31.03.2014. Shri Vidyadhar Laxman Sahasrabudhe also submitted the relevant ledgers for 2013-14. In similar circumstances in the case of Saurashtra Cricket Association [ 2022 (11) TMI 152 - CESTAT AHMEDABAD] the tribunal had relied on the observations made by Tribunal in the case of Vidarbha Cricket Associate [ 2014 (1) TMI 204 - CESTAT MUMBAI (L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 (Tri.-Mumbai). The said decision of Tribunal was upheld by the Hon ble Apex Court as reported in 2023 (72) GSTL 5 (SC). 2.2 Learned Counsel argued that in view of the decision of Hon ble Apex Court no tax is leviable on amounts received from BCCI by cricket associations, towards such similar assistance/expense reimbursements etc. for participating/ hosting cricket tournaments. He argued that since there was no tax payable on receipt of the capital equipment from BCCI by the appellant there is no question of any short payment/ non-payment in discharging service tax at all. Consequently, the demand should be dropped. 2.3 Learned Counsel further pointed that excess payment of service tax was adjusted by the appellant in terms of Rule 6(3) and Rule 6(4A) of the Service Tax Rules, 1994. He argued that as per the Rule (3) and Rule 6(4A), it is permissible to adjust excess paid service tax by way of refund or adjusting the tax paid as credit. He pointed out that the appellant has accordingly claimed re-credit in credit account. He relied upon on the following decisions on this regard: - M/s. Suzlon Energy Ltd. 2016(339) E.L.T. 87(Tri- Ahm) M/s. Vishal Engineers and M/s. Jani Co. 2012(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akhs Thirty One Thousand Six Hundred Twenty Five only). BCCI had also raised a debit note dated 31.3.14 (Received in February 2015) on BCA towards such equipment value, meaning thereby that BCCI treated such equipment value as a payment for the various amounts billed by BCA to them (on which Service Tax was already paid by BCA) from time to time, and hence, the amount due to BCA was accordingly reduced by BCCI to the extent value of Capital equipment provided by them. As such, there is legally no need to separately pay Service Tax on value of capital equipment by BCA, since BCCI has already credited BCA in their books of accounts as if it is a consideration paid in kind towards various other invoices raised by BCA on BCCI from time to time and on which invoices, appropriate Service Tax was always paid by BCA. Similar facts are mentioned in the statement of the Head of Account of BCCI. In the said statement against question No. 8, 9 and 10, Shri Vidyadhar Laxman Sahasrabudhe has observed that BCCI has debited an amount of Rs. 4.14 Crore from the account of BCA maintained by them by way of issuing debit note dated 31.03.2014. Shri Vidyadhar Laxman Sahasrabudhe also submitted the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keters, needy cricketers, retiring cricketers, players, umpires and other persons connected with the game of cricket; (e) creation of infrastructure. 5.5.3 The question is whether these activities constitute Business Support services as defined in the law. As per Section 65(104c) of the Finance Act, 1994 - support services for business or commerce means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing. Explanation - For the purposes of this clause, the expression infrastructural support services includes providing office along with office utilities, lounge, reception with competent personnel to handle matches, secretarial services, internet and telecom facilities, pant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut earlier and even when they organize events, they are primarily to educate the sportsmen, to promote and popularize the sports and also to inform and entertain the viewers. The organization of such events involve huge costs. Whatever surplus is left after defraying all the expenses is ploughed back to them in the organization itself. It will be taking a deliberately distorted view of the right claimed by such organizations to telecast the sporting event to call it an assertion of their commercial right. From the above decision of the Hon ble Apex Court, it clearly comes out that sports organizations are not business or commercial organizations, conduct of sports or sporting events and their broadcasting/telecasting is not assertion of commercial rights. The ratio of the above judgment applies squarely to the facts of the case before us. It thus clearly emerges that, the service, if at all any, rendered by the appellant is not in relation to any business or commerce and therefore, there is no service tax liability on the said activity under Section 65(104c) read with 65(105)(zzzq) of the Finance Act, 1994. 5.5.5 From the records, it is seen that the very same activity was examined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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