Howzat! BCCI loses 20 crore Service Tax case in Supreme Court
BOARD of Control for Cricket in India (BCCI). BCCI entered into contracts with Taj TV Ltd., Dubai/Mauritius & TWI Ltd. of UK, Nimbus Sports, Singapore to produce audio-visual coverage of the cricket match for broadcast.
Commissioner confirmed a total service tax demand of Rs. 20,70,22,328/- along with interest thereon and imposed penalties under Sections 76, 77 and 78 of the Finance Act, 1994. Aggrieved of the same, the BCCI appealed to the CESTAT.
The Tribunal [] held:
1. Activities undertaken by the non-resident service providers squarely falls within the definition of "programme" as defined in s.65(86a) and the service providers are 'programme producers' as defined in s.65(86b) - BCCI, as a recipient, is liable to pay ST u/s 66A of the FA, 1994.
2. BCCI liable to penalty under sections 76, 77 and 78 of the Finance Act, 1994.
3. BCCI has suppressed material facts from the department and hence, extended period of time has rightly been invoked for confirmation of service tax demand.
BCCI appealed to the Supreme Court but with no success.
The Supreme Court observed, "we see no infirmity in the order passed by the Tribunal and there is no reason to interfere in these matters"
And the appeals were dismissed.
See: