KINGFISHER AIRLINES LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) A Service Tax demand of Rs. 2,64,50,602/ - has been confirmed for the period June, 2008 to April, 2010 under the category of sponsorship service provided by the applicants for the services availed by the applicant for the above period under reverse charge mechanism.

(2.) The facts of the case are that the applicants entered with an agreement with Board of Control for Cricket in India for organising the IPL tournament wherein the applicants are the sponsors for Umpire under a 'Sponsor Agreement'. As per the agreement, Umpires in the tournament shall wear logo of the applicant on their dresses and there shall be display on the screen when the decision in game is referred to the third Umpire for decision. The department is of the view that the said activity is covered under 'Sponsorship Service', therefore a show -cause notice was issued to demand Service Tax on the above activity on the basis of the agreement. The show cause notice was adjudicated and converted into the impugned order.

(3.) TO support his contention he placed reliance on the decision of the Tribunal in DLF ltd. v. CST, Delhi reported in AIT -2012 -94 -CESTAT = : 2012 (27) S.T.R. 512 (Tri. -Del.) wherein a similar issue came before this Tribunal and Tribunal granted unconditional waiver of pre -deposit.