The Customs, Excise & Service Tax Appellate Tribunal, Mumbai ruled that the Knight Riders is not Liable to pay Service Tax on the Coaching Service provided in relation to Cricket Sport.
Facts
M/s Knight Riders Sports Private Ltd, Mumbai are incorporated as a Private Limited under the Companies Act, 1956. The tournament is popularly known as Indian Premier League (IPL). During the disputed period, the Service Tax Department initiated the show-cause proceedings against the appellants-assessee, seeking confirmation of service tax demands on various issues. The matter arising out of the show cause notices were adjudicated by the Principal Commissioner of Service Tax, Mumbai, wherein the service tax demands were confirmed along with interest and also penalties were imposed on the appellants.
Submissions
Counsel for the appellants-assessee submitted that central rights income earned from the BCCI is not subjected to levy of service tax.
He further submitted that the amount paid to the foreign players as fees cannot be subjected to levy of service tax under the taxable category of Business Support Service (BSS).
Decision
The two member bench of S.K. Mohanty Member (Judicial) and M.M. Parthiban Member (Technical) viewed that the confirmation of demand Rs.2,13,57,472/- towards common Cenvat credit reversal is not sustainable.
The bench did not find any merit for interfering with the decision of the Principal Commissioner in dropping the demand of service tax in the impugned order.
The tribunal noted that the activity of coaches and also support staff clearly stands out distinctly different as coaching service provided in relation to sports and is not covered Business Support Service.
The bench found the fees pertains to coaching the cricket players playing for the team and the amount paid is attributable to the coaching service or support service provided by them and thus service tax cannot be demanded on these fees and services as in the case of cricket players, as sports coaching and support staff service are exempt.
It was held by the tribunal that the demand of service tax on the issue is not sustainable and appeal made by the Revenue does not survive.
Case title: M/s Knight Riders Sports Pvt Ltd. v/s Pr. Commissioner of Service Tax
Citation: Service Tax Appeal No. 86857 of 2015
