The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal observed that service Tax cannot be Demanded against Tamil Nadu Cricket Association ( TNCA ) for Providing Chepauk Stadium to conduct Indian Premier League ( IPL ) Matches.
The appellant, M/s. Tamil Nadu Cricket Association, is registered under the Service Tax Commissionerate for providing various services in the nature of Renting Immovable Property Services, Advertising Agencies and Advertising Space or Time Services.
It was noticed that the appellant had received a sum of Rupees Ten Crore from M/s. Board of Control for Cricket in India (BCCI) for providing the Chepauk Stadium and assisting in the conduct of the IPL twenty-over cricket matches by M/s. India Cements Ltd.
The appellant herein had provided the stadium and support services for the conduct of the IPL cricket matches at Chennai, which, according to the Department, appeared to be rendering infrastructural support services and would fall under ‘Support Services of Business or Commerce.
Show Cause Notices were issued to the appellant proposing to demand the Service tax along with interest and also for imposing penalties.
The Counsel for the appellant explained that the appellant is a non-profit society which is affiliated to the BCCI, which is also a non-profit society intended to promote and control the game of cricket in India. The Counsel also pointed out that the appellant had not provided the Chepauk Stadium to the BCCI and it has, instead, provided the same to Chennai Super Kings for the IPL cricket matches. The appellants had received Rupees Fifty Lakhs per match for providing the stadium and appropriate Service Tax has been discharged by the appellant on the said amount.
The Counsel also contended that the receipt of Rupees Ten Crore from BCCI is not at all by way of consideration for promoting the matches to be played in the Chepauk Stadium; that the said amount is only financial support to the appellant as an affiliate of BCCI.
The Coram consisting of CS Sulekha Beevi, Judicial Member and Vasa Seshagiri Rao, Technical Member observed that “ After appreciating the facts and following the decisions placed before us, we have no hesitation to conclude that the Department has failed to establish that the appellant has rendered a service falling within the definition of ‘Support Services of Business or Commerce’.”
The Bench relied on the judgment in Secretary, Ministry of Information and Broadcasting v. Cricket Association of Bengal, and it was held by the Tribunal therein that sports organizations are not business or commercial organizations; conduct of sports or sporting events and their broadcasting/telecasting is not an assertion of commercial rights.
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