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Case Law Details

Case Name : Pinal Rohit Shah Vs C.C.E. & S.T.-Vadodara (CESTAT Ahmedabad)
Appeal Number : Service Tax Appeal No. 13204 of 2013- DB
Date of Judgement/Order : 21/06/2023
Related Assessment Year :
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Pinal Rohit Shah Vs C.C.E. & S.T.-Vadodara (CESTAT Ahmedabad)

Introduction: In a recent judgement by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), a crucial clarification was made concerning the taxability of remuneration earned by Indian Premier League (IPL) players. The case was between Pinal Rohit Shah and the Central Excise and Service Tax (C.E.&S.T.) department of Vadodara, revolving around whether the remuneration earned by Shah for brand promotion through his IPL agreement with Mumbai Indians falls under the Business Auxiliary Service, thereby attracting service tax.

Analysis: The key argument presented by Pinal Shah’s counsel was that the agreement between Shah and Indiawin Sports Private Limited (ISPL) was one of employment and that Shah’s engagement was not for brand promotion. The Counsel relied on several past judgments that supported their argument, declaring the service tax demand as not sustainable.

The Revenue, represented by Assistant Commissioner Vijay G Iyengar, reiterated the findings of the impugned order, which inferred that Shah’s engagement did involve brand promotion and thus should fall under Business Auxiliary Service.

CESTAT, upon careful consideration, held that the remuneration received was strictly for Shah’s involvement in playing cricket for the IPL team. They further cited previous verdicts and high court judgements, primarily Sourav Ganguly Vs. UOI & other – 2016, which stated that such arrangements are of employment, not direct brand promotion.

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