By TIOL News Service

MUMBAI, DEC 27, 2018: THE appellant during the period 2006-07 paid an amount of Rs. 1,36,99,550/- in foreign currency to one M/s. Concerto Live Integrated Event Solutions, UK in conducting the event Loomba Trust Bollywood Concert on 23.6.2006 at Trafalgar Square, UK. They also paid Rs. 5,53,325/- for hiring equipment on rent for organizing the event in Muscat.

Alleging that the events organized in UK and Muscat were a part of their marketing strategy in promoting the channel and the said services were classifiable under "Business Support Services",a total service tax of Rs.17,44,552/- was sought to be recovered from the appellant in terms of Section 66A of the FA, 1994 read with Rule 2(1)(d)(iv) of the STR, 1994 and Rule 3(iii) of the Taxation of Services Rules, (Provided outside India and received in India) Rules, 2006.

In adjudication, the demand was reduced to Rs. 16,76,825/- by setting aside the demand in respect of the amount paid to M/s. Real Media, Muscat on 24.4.2006 on the ground that the same concerned the period prior to insertion of the levy on ''business support service'.

The Commissioner (Appeals) upheld the order of the original authority.

The appellant is, therefore, before the CESTAT.

After considering the submissions made by both sides, the CESTAT extracted the definitions of both the competing entries viz. Event Management & Business Support Service and observed –

"9. From the evidences on record, it is clear that the event was organized for the appellant by M/s. Concerto at UK, which involves various stages to make the event successful. The appellant paid service charges for undertaking the event by M/s. Concerto. Neither in the agreement nor in the invoices the object or purpose of the event reveals the role of M/s. Concerto was to promote the business or marketing of the appellant's channel. M/s. Concerto has carried out their job of organizing the event as per the agreement and the outcome of the event, whether increased customer base of the appellant or otherwise, is not their concern. Thus, reading the definition of Support Service of Business or Commerce, particularly operational assistance for marketing, we do not find any merit in the contention of the Revenue that by organizing the event for appellant by M/s. Concerto, the provider of service has rendered any operational assistance for marketing of their channel; it might have some effect on the increasing the viewer base of the appellant's channel, but it cannot be construed that M/s. Concerto has provided operational assistance in marketing of the channel of the appellant, since no such terms and conditions figure in the agreement nor in the proposal form. Therefore, we are of the view that the appellant had not received services under ''Business Support Services', but the service rendered by M/s. Concerto is correctly classifiable under Event Management Service and since the entire service is performed outside India, hence not taxable."

The impugned order was set aside and the appeal was allowed with consequential relief.

(See 2018-TIOL-3876-CESTAT-MUM)