SIGN IN SUBSCRIBE

News Update

Indian Coast Guard intercepts Pakistani boat with 86 kg drugs worth Rs 600 CroreGold watch of richest Titanic pax auctioned for USD 1.46 millionIraq is latest to criminalise same-sex marriage with max 15 yrs of jail-termUndersea quake of 6.5 magnitude strikes Java; No tsunami alert issuedZelensky says Russia shelling oil facilities to choke supply to Europe20 army men killed in blasts at army base in Cambodia3 Indian women from Gujarat died in mega SUV accident in USJNU switches to NET in place of entrance test for PhD admissionsGST - fake invoice - Patanjali served Rs 27 Cr demand noticeI-T - Bonafide claim of deduction by assessee which was accepted in first round of proceedings does not tantamount to furnishing of inaccurate particulars, simply because it was disallowed later: ITATIndia-bound oil tanker struck by Houthi’s missiles in Red SeaSCO Defence Ministers' Meeting endorses 'One Earth, One Family, One Future'RBI issues draft rules on digital lendingI-T - In order to invoke revisionary jurisdiction u/s 263, twin conditions of error in order and also prejudice to interest of Revenue must be established independently: ITATCRPF senior official served notice of dismissal on charges of sexual harassmentIndian Air Force ushers in Digital Transformation with DigiLocker IntegrationColumbia faculty blames leadership for police action against protestersCX - When process undertaken by assessee does not amount to manufacture, even then CENVAT credit is admissible if such inputs are cleared on payment of duty which would amount to reversal of credit availed: CESTATGoogle to inject USD 3 bn investment in data centre in IndianaCus - The equipments are teaching accessories which enable students in a class to respond to queries and these equipments are used along with ADP machine, same merits classification under CTH 8471 60 29: CESTATUN says clearing Gaza mounds of rubble to take 14 yrsST - When issue is of interpretation, appellant should not be fastened with demand for extended period, the demand confirmed for extended period is set aside: CESTAT
 
ST – IPL - Whether there can be a levy of ST by Union on sale of tickets and a levy of entertainment tax by the State - having collected ST, there is an obligation on Petitioner to deposit the same: HC

By TIOL News Service

NEW DELHI, MAY 04, 2016: THE petitioner challenges the legislative competence for the levy of Service Tax on the sale of tickets for the Indian Premium League (IPL) Cricket Tournament.

The grounds are that by virtue of the amendments by the Finance Act, 2015 to the Finance Act, 1994 with effect from 1st June, 2015 together with the Service Tax Notification No. 06/2015 dated 1st March, 2015 and the Circular No. 334/5/2015-TRU dated 28th February, 2015 the earlier negative list setting out items in respect of which Service Tax was not leviable included 'entertainment' which in terms of Section 66D(j) (now omitted) included sporting events. It is further pointed out that under Section 2(i) of the Delhi Entertainments and Betting Tax Act, 1996 the expression 'entertainment' includes ‘games, sport or race'. It is, therefore, contended that tax on entertainment, which the Petitioner is in any event paying, is within the exclusive domain of the State as per List II of the 7th Schedule to the Constitution. It is, therefore, submitted that in respect of the same taxable event there cannot be a levy of service tax by the Union on the sale of tickets and a levy of entertainment tax by the State.

The secondary submission is that in terms of the Agreement entered into between the Petitioner and the Board of Control for Cricket in India (BCCI) there is an obligation on the Petitioner to provide BCCI 20% free tickets in every category. Inasmuch as the Petitioner should not be made liable to pay Service Tax on such ‘free tickets'.

The High Court noted that for the current IPL season, the Petitioner had already collected Service Tax on the tickets sold. And, therefore, having collected the Service Tax in terms of the impugned amendments in the Finance Act, 1994, there is an obligation on the Petitioner to deposit such Service Tax with the Central Government.

Therefore, the High Court viewed that the only interim order that can be passed, while reserving the rights and contentions of both the parties at the final hearing of the writ petition, is to direct that the Service Tax as collected and deposited by the Petitioner during the pendency of the present writ petition will be subject to the final outcome of the petition.

The application was disposed of.

(See 2016-TIOL-883-HC-DEL-ST)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST