Page 79 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] HYDERABAD RACE CLUB v. COMMISSIONER OF CUS. & C. EX., HYDERABAD 293
12. While rebutting these arguments, it is submitted by the Ld. DR that
admittedly the appellants are receiving two different amounts, one in the name
of stall fee towards the enclosure/space provided by the appellant to their li-
censed bookies and another is the commission at the rate of certain percentage of
the revenue collected. It is impressed upon that the said commission cannot be
categorized as stall fee, as is submitted by the appellant, as the same is with re-
spect to other support services, as that of auditing, facility of live telecast, facility
of caterer, etc., being provided to the said licensed bookies in the appellant’s
club. Hence, the commission is the consideration for providing the Business
Support Service by the appellant as such the demand has rightly been confirmed.
13. Coming to the royalty charges as received by the caterers are since
the caterers are admittedly serving the food stuff in the premises of the appellant
under an agreement entered into between the two, the same definitely amounts
to providing a space in the appellant’s premises and hence, the said royalty has
rightly been confirmed to be the consideration against providing the Renting of
Immovable Property Service to the said caterer. As such, there is no infirmity in
the order under challenge. The appeal is accordingly, prayed to be dismissed.
14. After hearing both the parties and perusing the entire record of the
impugned appeals, we are of the opinion as follows :-
The appellants are receiving the amount from their licensed bookies and
the caterers on the following counts :-
(1) Book-makers stall fee
(2) Commission from book-makers :
(i) For inter-venue betting
(ii) Consideration for live telecast, and
(3) Royalty from caterers.
15. The first two counts are alleged to be the Business Support Services
being provided by the appellant to their licensed bookies and the third one is
held to be the consideration in lieu of providing Renting of Immovable Property
Services to the caterer. To adjudicate whether these have rightly been classified
by the adjudicating authority or not, we first need to look into the definitions of
Business Support Service under Section 65(104c) of the Finance Act, 1994 and
Renting of Immovable Property under Section 65(90a) of the Finance Act, 1994
which reads as follows :-
“Support Services of Business or Commerce” means services provided in
relation to business or commerce and includes evaluation of prospective
customers, telemarketing, processing of purchase orders and fulfilment
services, information and tracking of delivery schedules, managing distri-
bution and logistics, customer relationship management services, account-
ing and processing of transactions, operational assistance for marketing,
formulation of customer service and pricing policies, infrastructural sup-
port services and other transaction processing.
Explanation. - For the purposes of this clause, the expression “infrastructural
support services” includes providing office along with office utilities,
lounge, reception with competent personnel to handle messages, secretarial
services, internet and telecom facilities, pantry and security; [Section
65(104c) of the Finance Act, 1994]

GST LAW TIMES  16th April 2020  199