Karnataka State Cricket Association Vs Commissioner of Service Tax (CESTAT Bangalore)
CESTAT Bangalore held that State Cricket Association rendering services to their members cannot be leviable to service under ‘Club or Association Services’. Accordingly, demand confirmed on this count is set aside.
Facts- The appellant is an association affiliated to the Board of Control for Cricket in India (BCCI). On the basis of intelligence, investigation was initiated against the appellant. On completion of investigation, show-cause notice was issued on 13.10.2010 alleging that they had rendered services under the taxable category of ‘sale of space or time for advertisement’, renting of immovable property service and failed to discharge appropriate service tax on ‘club or association service’ and availed irregular cenvat credit on LED score board. Consequently, service tax amount of Rs.1,00,96,834/- not paid under the category of ‘sale of space or time for advertisement service’ for the period 01.04.2006 to 31.03.2010; Rs.39,08,913/- towards ‘renting of immovable property service’ for the period 01.06.2007 to 31.03.2010 and Rs.66,05,262/- under the category of ‘membership or club or association service’ for the period from 01.04.2005 to 31.03.2010 and cenvat credit of Rs.28,64,140/-availed wrongly were proposed to be recovered with interest and penalty. On adjudication, the demands were confirmed with interest and penalty.
