2026-VIL-481-CESTAT-KOL-ST
  1. Home
  2. 2026-VIL-481-CESTAT-KOL-ST

SERVICE TAX CESTAT Cases

Service Tax – Taxability of grants/subsidies received from BCCI – HELD - The subsidies received by them are grants/ subventions made by BCCI to its member associations pursuant to BCCI's own constitutional and charitable obligations. The said grants or subsidies were not paid as quid pro quo for any identified taxable service rendered by the Appellant to BCCI. There is no service tax liability on the grants received by the appellant from BCCI – Further, the 'doctrine of mutuality' applies in this case as BCCI is an association of its member state associations and the subsidy is distributed inter se among members. In law, an association cannot render services to itself and amounts flowing from a mutual surplus to members cannot be treated as taxable 'consideration' or as 'service'. Accordingly, demand of service tax is set aside and the appeal is allowed - Taxability of Bundled services for promotion of sporting events - Whether liable to service tax – HELD - All the services provided by the appellant are in the nature of 'bundled services', with the predominant nature of promotion of sporting event. Such services for promotion of sporting events are not leviable to service tax both prior to 30.06.2012 in terms of Notification No. 30/2010-ST dated 22.06.2010 and thereafter in terms of Clause 10(b) of the Mega Exemption Notification No. 25/2012-S.T. dated 20.06.2012. The services rendered by the association in connection with promotion of sports are naturally bundled and constitute a single exempt service of promotion of sports - Since the appellant has rendered 'bundled services' in connection with promoting the game of cricket and hence not liable to service tax - Demand of service tax under the category of 'Event Management Services' - The event management services under Section 65(40) of the Finance Act pre-supposes a commercial arrangement where an 'event manager" undertakes planning, promotion, organizing or presentation of an event 'for a client' for consideration. However, in the present case, the Appellant hosts matches in its own right as a full constituent member of BCCI, in furtherance of its own constitutional objects, and there is no contract by which BCCI engages the Appellant as its event manager for a fee - Disallowance of CENVAT credit – HELD - There is no allegation in the OIO that the quantum of CENVAT credit disallowed relates to ineligible input services. The entire credit availed by the appellant has been utilized for payment of service tax on output services. Thus, the cenvat credit availed and utilized by the appellant cannot be denied on the ground that there was no documentary evidence available. The Tribunal also held that the CENVAT credit on Rent-a-cab service availed by the appellant cannot be disallowed as the rent-a-cab services were used for transporting players, officials etc. in connection with cricket matches, and not for personal commute or perquisite transport of employees. Accordingly, the disallowance of CENVAT credit is not sustainable and set aside
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

ISD Distribution in Same Month...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?