2025-VIL-2186-CESTAT-MUM-ST
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SERVICE TAX CESTAT Cases

Service Tax - CENVAT Credit, Trading Activity, Online Ticketing Platform - The respondent is engaged in the business of providing online ticketing platform through its website 'bookmyshow.com' for booking of cinema tickets and event tickets. The respondent had entered into agreements with cinema hall owners and event organisers to provide the online ticketing platform, where the respondent would collect the ticket price from the customers and remit the same to the cinema hall owners/event organisers, while retaining a convenience fee. The department issued a show cause notice proposing to recover the irregularly availed CENVAT credit on the ground that the respondent was engaged in 'trading activity' of tickets, which is an exempt service, and therefore not eligible for the CENVAT credit - Whether the respondent's activity of providing the online ticketing platform amounts to 'trading activity' of tickets, thereby rendering the activity as an exempt service and making the respondent ineligible for CENVAT credit under Rule 6(3) of the CENVAT Credit Rules, 2004 - HELD - The respondent's activity of providing the online ticketing platform does not amount to 'trading activity' of tickets. The Tribunal analysed the agreements entered into by the respondent with the cinema hall owners and event organisers, which clearly show that the respondent was acting as a booking agent and had no control over the inventory or pricing of the tickets. The respondent was merely providing an interface for the customers to book the tickets, and the entire ticket price was remitted to the cinema hall owners/event organisers, with the respondent retaining only the convenience fee - The Tribunal relied on various judicial precedents to hold that the respondent was providing a taxable service and not engaged in any trading activity, and therefore, the proposals in the show cause notice for reversal of CENVAT credit under Rule 6(3) were not sustainable - The impugned order dated 27.05.2016 passed by the Commissioner is upheld and the appeal filed by the revenue is dismissed
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