While granting relief to famous cricket player Karn Sharma, the Ahmedabad bench of the CESTAT held that no service tax liability can be attributed to the cricket players for promotional activities provided by them during the Indian Premier League (IPL) prior to 01.07.2010.
In the instant case, the appellant, Karn Sharma was playing for M/s Royal Challengers Bangalore. Under a franchise agreement entered into with the team, the appellant received Rs. 20 lakhs for the period 01.04.2010 from 31.12.2010. The service tax department took a view that the appellant was promoting activities of the franchise by wearing franchisee’s official cricket clothing, displaying franchisee’s mark/logo etc. which was nothing but akin to promotion or marketing of the logo/brands/marks of the franchisee/ sponsor. The department said that the services/promotional activities provided by appellant during the said IPL matches was covered und.er the category of ‘Business Support Service.
The bench further relied on the decision in the case of Sourav Ganguly Vs. UOI wherein the Calcutta High Court held that the services of brand promotion before 01.07.2010 are not taxable.
Relying on the above decision, the CESTAT quashed the order against Karn Sharma and held that no service was provided nor requiring him to discharge any service tax.
Recently, while allowing relief to former Rajasthan Royal’s player, Swapnil Asnodkar, the Mumbai CESTAT also took a similar view and held that no service tax is leviable on Brand Promotion Fee.
Chartered Accountant Shri Amresh Vashisht appeared for the appellant.
Subscribe Taxscan Premium to view the Judgment
