International Merchandising Company Vs Commissioner (Supreme Court of India)
The appeals arose from the Customs, Excise and Service Tax Appellate Tribunal’s judgment dated 29.05.2020, which had upheld, in part, a common adjudication order dated 01.08.2013 issued on five show cause notices dated 20.10.2009, 20.04.2010, 20.04.2011, 23.03.2012 and 23.04.2013. The appellant, engaged in sports, entertainment and media services, organised events including the Chennai Open Tennis Tournament and Lakme Fashion Week, and entered into agreements relating to celebrity appearances, broadcasting rights, IT services and secondment arrangements.
One issue concerned payments made to First Serve Entertainment (FSE) under an agreement for the appearance and participation of Vijay Amritraj in the Chennai Open Tennis Tournament. Another issue related to agreements with Zee Telefilms and Trans World International for licensing and sale of telecast rights of the Chennai Open. Following audit, the Commissioner confirmed service tax demands under various categories, including manpower recruitment or supply agency service and programme producer service. The Tribunal upheld the demand under manpower recruitment or supply agency service, applied its earlier decision in Board of Control for Cricket in India, rejected the appellant’s plea against invocation of the extended limitation period, and remanded the matter only for re-determination of penalty.
