ORDER
M.V. Ravindran, Member (J)
1. This stay application is directed towards the demand of Service Tax of Rs. 25,13,555/- and equivalent amount of penalty under Section 76 and 78 in addition to penalty under Section 77.
2. Heard both sides and perused the records.
3. It is on record that the current applicant has obtained commercial rights to promote and manage event of PGAI in India. The appellant has also registered itself as an event management services and was paying the service tax on such services rendered by it. The current show cause notice has been issued to the appellant on the ground that the appellant has short paid the service tax on the ground of services rendered by it. As regards the prize money which has been collected by it and paid to the participants of the golf tournament and also on entry fee charged by it from the players.
4. Considered the submissions made by both sides in detail and perused the records. On perusal of the record, it is seen that the appellant has been taking a stand that the entire prize money and pro-am money was collected on actual basis and given to the winners who were participating in the tournament, nothing contrary to this stand, is on records. As regards the entry fee, it is contended that it is not a service as such given by the appellant to the players, which is also regarded to be, by the adjudicating authority in his order-in-original. To our mind, if the amount of entry fee and prize money is on actual basis and no other services are rendered as an event management services, service tax liability on them, seems to be, prima facie not leviable. Accordingly, in the facts and circumstances of the case, the application for waiver of pre-deposit of amount of service tax and penalties is allowed and recoveries thereof, stayed till the disposal of the appeal.
(Pronounced in the open Court)