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Former Indian skipper Anil Kumble’s promotional activities for the India Premier League (IPL) will not face service tax with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) setting aside tax department’s claim to impose service tax on advertising, promotional activities and team endorsement.
The Bangalore bench of CESTAT held that the promotional activities provided by Kumble during the IPL shall not be treated as “business auxiliary services” and therefore, no service tax can be imposed on the same. The CESTAT set aside the department’s ₹50 lakh service tax claim.
The department had demanded service tax of ₹27.65 lakh for 2009-10 and ₹21.41 lakh for 2008-09, apart from the interest under Section 75 and penalties under Sections 76 and 77 of the Act.
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