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IPL cricket players wearing apparel which bears the brand/marks of various sponsors cannot be considered as promoting any particular brand or product or service as an independent individual. - CESTAT
Such Services cannot be classified as business support services.
The Appellants has been held to be liable to service tax under the service category of “Business Support Service” for wearing the team clothing which bears the brands/ marks of various sponsors and they are also required to participate in promotional /public events
of the franchisee thus they are providing Business Support Service.
CESTAT held
👉🏻Though in the impugned order the appellants were made liable to pay service tax under the business support service but as, no specific entry in definition of “Business Support service”
has been shown to be applicable to levy service tax.
👉🏻The appellants are not promoting any particular brand or product or service and also not taking part in any business activity of promoting the sale of any product or service of any entity.
👉🏻Clause -2 of IPL agreement even makes it all the more clear that the franchisee is engaging players as professional cricketer who shall be employed by the franchisee.
👉🏻From this, it is abundantly clear that a person who has earned the reputation and recognition as a player
is employed by the franchisee and it is not the other way round.
👉🏻Appeal allowed
Title: Yusufkhan M Pathan Vs C.C.E. & S.T.-Vadodara-ii
Court/Authority: CESTAT Ahmedabad, Regional Bench, Court-3
Citation: Service Tax Appeal No.127 of 2012
Dated: 20-Jan-2023