Prima facie service tax leviable on selling of space for advertisement in cricket stadium

CESTAT, NEW DELHI BENCH

Rajasthan Cricket Association

v.

Commissioner of Central Excise, Jaipur

STAY ORDER NO. ST/S/663/2012

APPLICATIN NO. ST/STAY/932/2012

APPEAL NO. ST/418/2012-CU[DB]

JUNE 4, 2012

ORDER

Mathew John, Technical Member – The appellant Rajasthan Cricket Association organises cricket matches in various places in Rajasthan and they allow different parties to put up advertisement in the stadium in which matches are being organised, and they have been collecting charges for selling such advertisement space. Revenue made out a case that Appellant should have paid service tax under the taxable entry in Section 65(l05)(zzzm) which covers sale of space for advertising. The amount involved in this matter was about Rs. 42,10,140/-. There is another small amount of around Rs. 87,000/- which relates to membership fees collected from their district level association to be Members of the state level association.

2. The Counsel for the Appellant submits that their association is being run on a no profit no loss basis and therefore the activity carried out by the association cannot be considered as a service. The counsel for the appellant also submits that they will be eligible for the input service credit to the extent of Rs. 21 lakhs approximately if the activity is held to be taxable and they will be producing documents to support this claim at the time of final decision of the matter.

3. Ld. A.R. on the other hand submits that the impugned activity covered by Section 65(l05)(zzzm) and therefore the service tax is correctly levied.

4. Considered arguments on both sides. Prima facie service tax is leviable on selling of space for advertisement as carried out by the appellant therefore the appellant is directed to deposit an amount of Rs. 21,50,000/- (Rupees Twenty one lakhs and fifty thousand) as pre-deposit for admission of the appeal within six weeks. Subject to such pre-deposit the balance amount of dues shall remain waived during pendency of the appeal.

5. Compliance to be reported on 8.8.2012.

NF