HC dismisses appeal over interest awarded to Sourav Ganguly on brand promotion service tax

KOLKATA: The Calcutta High Court has dismissed an appeal by the Commissioner of Service Tax here against a tribunal order which awarded interest to former India cricket captain

Sourav Ganguly on money wrongly levied on the sports icon on his brand promotion earnings.

The Customs, Excise and Service Tax Appellate Tribunal, East Zonal Bench, Kolkata, on December 14, 2020, ordered refund of the demand amount and interest on it to Ganguly, former president of the Board of Control for Cricket in India (BCCI).

The Revenue department made an appeal before the high court challenging the order.

Dismissing the appeal, a division bench comprising justices T S Sivagnanam and Hiranmay Bhattacharyya said that no question of law has arisen for consideration of this appeal.

The over-a-decade-long legal battle commenced with the issuance of a show cause notice dated September 26, 2011, demanding service tax from Ganguly for brand promotions made by him.

In November 2012, the demand made by the show cause notice was confirmed in an adjudication by the Commissioner of Service Tax, Kolkata, along with a direction to pay interest and penalty.

Ganguly deposited the demand of Rs 1,51,66,500 on February 26, 2014, and Rs 50 lakh in March 2014 in compliance with an interim order of the High Court.

On a petition by Ganguly, the high court had on June 30, 2016, said that he is entitled not only to a refund of Rs 1,51,66,500

and Rs 50 lakh paid in two trances, but also quantified the quantum of interest at the rate of 10 per cent.