CCE & ST Vs L. Balaji (CESTAT Chennai)
Conclusion:
Cricket players were not liable to pay service tax on the amount received from the franchise as the money was not given by the franchise, rather it was the money received from BCCI directly for winning and not towards any services.
Held:
Revenue proceeded against the assessees who were cricket players representing various Teams owned by various franchises in the IPL by observing that assessee’s were providing Business Support Services up to 30.06.2010 and Business Promotion Services for the subsequent periods. It was held that having taxed under Business Support Services, Revenue should not have changed its stand for a different period (and contended that the services are taxable under Business Promotion Services) when there was no change in the nature of services alleged. It was also observed that the money was not given by the franchise, rather it was the money received from BCCI directly for winning and not towards any services. Hence, the prize money could never be included in the taxable value.
FULL TEXT OF THE CESTAT JUDGMENT
In all these appeals, as the issue involved is common, are taken up for hearing together. The assessees are aggrieved by the demand raised against them for the alleged services for the period after 01.07.2010 to 31.03.2011 under the category of Brand Promotion services (BPS) under Section 65(105) (zzzzq); and the department is aggrieved by the deletion of the demand raised against the assessees for the period upto 30.06.2010 under Business Support Service (BSS).
2. The appellants are cricket players, representing various Teams owned by various franchisees, in the IPL. The Revenue, on the ground that it had gathered some inputs during investigation that the assessee’s were providing BSS upto 30.06.2010 and BPS for the subsequent periods, issued Show Cause Notices which are as under:-
