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2020 ] HYDERABAD RACE CLUB v. COMMISSIONER OF CUS. & C. EX., HYDERABAD 289
2020 (35) G.S.T.L. 289 (Tri. - Hyd.)
IN THE CESTAT, REGIONAL BENCH, HYDERABAD
[COURT NO. I]
Shri P. Venkata Subba Rao, Member (T) and Ms. Rachna Gupta,
Member (J)
HYDERABAD RACE CLUB
Versus
COMMISSIONER OF CUS. & C. EX., HYDERABAD
Final Order Nos. A/30734-30736/2019, dated 9-8-2019 in Appeal
Nos. ST/3376/2012-DB, 20266/2014-DB and 30352/2016-DB
Business Support Service (BSS) - Assessee providing infrastructural
support facilities to book-makers operating in club premises as also arranging
live telecast of races of other centers/Race Clubs and conducting Inter-venue
betting - Demand raised on amount received by assessee under 2 counts, (1)
Book-makers stall fee, (2) Commission from book-makers - HELD : Providing
space in Club to book-maker to run his business of booking bets from bunters,
to be in relation to business of bookie and amounts to Infrastructural Support
being provided to booker by assessee and well covered under explanation to
Section 65(104c) of Finance Act, 1994 - Charges received from bookies in name
of commission, actually for providing Inter-venue Betting Services, Auditing
Services, live telecast services and for catering services to book-makers - Im-
pugned services also provided in relation to business of book-makers - Mere
use of word “outsource” in C.B.E. & C. Circular No. 334/4/2006-TRU, dated
28-2-2006 not to alter definition of Business Support Service given in statute -
Therefore, assessee’s argument that if services not outsourced by bookmaker
to Club, services cannot be Business Support Service, not acceptable - Infra-
structural Support, support of Accountancy, Customer Relationship (bunters
being available to book-maker within Club), Inter-venue betting and structur-
al support in form of live telecast definitely Business Support Services provid-
ed by Club to book-makers - Section 65(104c) of Finance Act, 1994. [paras 14, 15,
16, 17, 18, 19, 20, 21]
Demand - Renting of Immovable Property Service - Royalty charges
collected from caterers operating in club premises, taxability of - HELD : Ca-
terer allowed to roam around in entire premises of Club to offer food and ca-
tering services - Club not providing any other service either in form of cutlery
crockery or in form of serving boys - Assessee providing Renting of Immova-
ble Property Service - Even though facts of Royal Western India Turf Club Ltd.
[2015 (38) S.T.R. 811 (Tribunal)] similar but proposal in show cause notice for
Royal Western India Turf Club Ltd. altogether different, hence, adjudication
not completely binding - Demand qua receiving charges from caterers to roam
in club premises as consideration for providing Renting of Immovable Proper-
ty Service rightly confirmed - Section 65(90a) of Finance Act, 1994. [paras 22]
Demand - Business Support Service provided to book-makers operat-
ing in club premises - Leviability of Service Tax on amount received by as-
sessee from book-makers post negative list era - HELD : Value of all services
other than those services specified in negative list, provided or agreed to be
GST LAW TIMES 16th April 2020 195
