Commissioner of CGST & C. Ex. Vs The Cricket Association of Bengal (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, examined appeals arising from an order confirming service tax demand of ₹33.54 crore, along with interest and penalty, against a cricket association for the period April 2010 to March 2015. The demand was based on allegations that the association had provided taxable services such as event management, renting of immovable property, club or association services, and business support services, along with non-payment under reverse charge and irregular CENVAT credit.
The association contended that the amounts received from the Board of Control for Cricket in India (BCCI) were grants or subsidies meant for promotion of cricket and not consideration for any taxable service. It argued that its activities were primarily aimed at promoting cricket and were not undertaken as commercial services rendered to BCCI.
The Tribunal observed that all activities undertaken by the association constituted “bundled services” with the predominant objective of promoting sporting events. It noted that services related to promotion of sports were exempt from service tax both prior to 30.06.2012 and thereafter under the Mega Exemption Notification. The Tribunal further held that event management service requires a commercial arrangement involving provision of services for consideration, which was absent in this case as the association hosted matches in its own capacity.
