Fees received by the cricket players from IPL team owners is not Business Support Service

Last updated: 30 January 2023

Court :
CESTAT, Ahmedabad

Brief :
The CESTAT, Ahmedabad in Yusuf khan M Pathan & Irfan Khan Pathan v. C.C.E. & S.T. [Final Order No. A/ 10086-10087 /2023 dated January 20, 2023] Set aside the order demanding Service Tax on the fees paid to cricketers. Held that, the fees received by the international cricket players from cricket team owners, whereby, they were employed to play for the respective teams in terms of the contract in Indian Premium League ("IPL") seasons, would not come under the head of ‘Business Support Services’. Further held that, playing cricket is the primary reason for which IPL was formed and promotional activities are ancillary to the main purpose that of playing cricket.

Citation :
Final Order No. A/ 10086-10087 /2023 dated January 20, 2023