Legal provisions involved: Sections 65(105)(zu), 65(40), 65(41) and 73 of the Finance Act, 1994

Judgement by: Supreme Court of India

Judge/Bench: Justice J.B. Pardiwala and Justice K.V. Viswanathan

Facts

HT Media Ltd. organises the Hindustan Times Leadership Summit every year. For the event, it invited well-known international speakers and hired booking agencies only to arrange and confirm the speakers’ participation. The tax department issued notices claiming that these payments amounted to “event management services” and demanded over ₹60 lakh as Service Tax.

Key legal provisions

Sections 65(105)(zu), 65(40), 65(41) and 73 of the Finance Act, 1994

Issues raised

Whether hiring agents only to book speakers can be treated as an event management service for charging Service Tax?

Arguments of the case

The tax department argued that booking speakers is part of managing an event. HT Media argued that the agents did not plan or manage the event; they only booked speakers for it.

Reasoning of the Bench

The expressions ‘event management’ and ‘event managers’ is commonly understood in the sense of appointing someone to manage or organize the event. Individual contracts for booking of persons required for participation in the event are not commonly understood as “event management” contracts.”

Judgement

The Supreme Court ruled in favour of HT Media. It held that booking speakers is not the same as managing an event. Since the service did not fit within the legal definition of “event management,” Service Tax could not be imposed. The ₹60 lakh tax demand was therefore cancelled.

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