Case Law Details
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.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
