Fact of the case: M/s. India Trade Promotion Corporation, incorporated under Section 25 of the Companies Act, 1956 is engaged in organising and managing trade fairs/exhibitions in India and abroad. In the month of October 2010, the assessee holds a trade/business exhibition which was banned by the Government of India in view of organisation of Commonwealth Games at New Delhi for security reasons.
During the Commonwealth Games held in New Delhi, Government of India had chosen Pragati Maidan and premises of the assessee, for setting up a media centre for the Commonwealth Games for which Ministry of Information and Broadcast had agreed to pay Rs. 75.77 crore for hiring space with desired infrastructure and incidental services such as water, electricity etc. The assessee received a total of Rs. 75 crores out of which it refunded unspent amount of Rs. 6.9 crores and spent the balance amount. The assessee received a show cause notice proposing to raise demand of Rs. 4 crores (approx.) under ‘Business Exhibition Service’
Assesses Contention: No service tax is payable by them under ‘business exhibition service’ as business exhibition, has been defined u/s 65(19a) to mean an exhibition, to market, to promote, to advertise, to show cause any product or service, intended for the growth in business of the producer or provider of such product or service. Assessee further contended that taxable service as defined under Section 65(105((zzo) means any service provided to an exhibitor by the organiser of a business exhibition in relation to business exhibition and as none of the conditions precedent as provided are available, requested to set aside the demand raised.
Held: In the case of M/s. India Trade Promotion Corporation Vs . CST, Delhi-IV, the Hon’ble CESTAT held that, providing of space along with some amenities by the assessee to another department of Government of India for setting up of media centre for the purpose of dissemination of the sports news and telecasting of sports events of the Commonwealth Games, 2010 does not amount to holding of a business exhibition and/or providing of any service under the provisions of Section 65(105)(zzo) read with Section 65(19a) of the Finance Act.
Accordingly, CESTAT set aside the tax demand along with interest and penalty. CESTAT further stated that assessee is not liable to pay any service tax under reverse charge basis on expenditure incurred in foreign currency on account of payments made to their foreign offices as they are not rendering any taxable service.
Citation: TS-602-CESTAT-2018-ST