2026-VIL-06-SC-ST
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SERVICE TAX Supreme Court Cases

Service Tax - Event management service, Services of Booking agents, Demand under Reverse charge mechanism - Appellant engaged booking agents to book speakers for the event – Demand of service tax on the fees paid to the speakers through the booking agents under the category of "Event Management Service" – Vide the impugned order the Tribunal, set aside the invocation of the extended period of limitation but affirmed the demand under the normal period of limitation under the category of "Event Management Service" - Whether the fee paid by the appellant to the personalities/speakers, through their booking agents, is liable to Service Tax under the reverse charge mechanism under the taxable category of “Event Management Service” under Sections 65(40) and 65(41) read with Section 65(105)(zu) respectively of Chapter V of the Finance Act, 1994 – HELD - The agreements between the appellant and the booking agents were in the nature of booking particular speakers for the Summit. The services rendered by the agents were in the capacity of booking agents and not event managers - The services rendered by such agents to the assessee were in the nature of booking the speakers for the event to be organized by the assessee. The contracts were entered into with the agents qua each speaker laying down the modalities of his/her visit and consideration for the same. Such services cannot be equated with “event management service” - The agents were not engaged in managing the venue, decoration, sound, light, security, communication, sale of tickets, or publicity of the event, nor were they involved in the planning, promotion, organization, or presentation of the Summit – In view of principle of strict interpretation of taxing statutes, the service in question does not fall within the definition of "Event Management Service" as provided under the Finance Act – Further, applying the common parlance understanding of “event management”, the expressions ‘event management’ and ‘event managers’ is commonly understood in the sense of appointing someone to manage or organize the event. Individual contract for booking of persons required for participation in the event are not commonly understood as “event management” contracts - The fee paid by the appellant to the personalities/speakers, through their booking agents, is not liable to Service Tax under the category of "Event Management Service" under the Finance Act – The impugned order is set aside and the appeal is allowed - The argument of the revenue that, without the speaker the event would be devoid of any significance and therefore, the service in question is an “Event Management Service”, also deserves to be rejected. That the presence of the speaker is essential for the event cannot be disputed. However, whether the service of the speaker or the agent on behalf of the speaker can be considered to be “event management service” is altogether a different issue. The speaker does not plan, promote, organize or present the event. Thus, the speaker, is neither an “event manager” nor does he provide an “event management service”. Similarly, the booking agent who merely books the speaker also acts in the capacity of an agent or representative for agreeing to the terms of the speakers’ presence at the event. Participation in the event cannot be considered as management of the event. This precisely is the fundamental error committed by the revenue as well as by the Tribunal while imposing Service Tax on the service in question under the category of “event management service”. [para 39, 40, 41]
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