Supreme Court Rules in Favor of HT Media in Landmark Service Tax Case Service Tax on Fees Paid to Event Speakers Deemed Inapplicable Under "Event Management Service"
In a significant ruling, the Supreme Court of India has delivered a verdict in favor of HT Media Limited, absolving it from paying Service Tax on fees paid to speakers through booking agents for participation in its renowned annual Hindustan Times Leadership Summit. The apex court, in its judgment dated January 16, 2026, determined that such transactions cannot be classified as "Event Management Service" under the Finance Act, 1994.
The court's decision comes as a relief to HT Media Limited, which had been embroiled in a legal dispute with the Principal Commissioner, Delhi South Goods and Service Tax, over the classification of services provided by booking agents like the Washington Speakers Bureau and Harry Walker Agency. The Revenue had contended that the fees paid to speakers through these agents should be taxed under "Event Management Service," invoking Sections 65(40) and 65(105)(zu) of the Finance Act.
Justices J.B. Pardiwala and K.V. Viswanathan, presiding over the case, emphasized the principle of strict interpretation of taxing statutes. They underscored that the contracts for booking speakers did not meet the statutory definition of "event management," which involves the planning, promotion, organizing, or presentation of events. Instead, the court found these agreements to be distinct from event management services, as they involved merely the booking of speakers, not the management or organization of the event itself.
The court further clarified that the booking agents acted as intermediaries for the speakers and did not provide services that could be categorized under "event management." This interpretation was supported by the Board's Circular issued on August 8, 2002, which delineates the scope of event management services to include tasks like venue management, set decoration, and event promotion-activities not performed by the booking agents in this case.
The judgment also referenced past rulings to bolster its reasoning, notably distinguishing the present case from the Supreme Court’s decision in International Merchandising Company LLC, where the services were classified under "Manpower Recruitment or Supply Agency Service."
The decision marks a pivotal moment in the interpretation of service tax laws, setting a precedent for similar cases where the scope and classification of services under tax statutes are contested. It underscores the need for clear statutory definitions and the adherence to the principle of not imposing tax by inference or analogy.
Bottom Line:
Service Tax - Fee paid to speakers through booking agents for participation in an event cannot be classified as "Event Management Service" under Sections 65(40) and 65(105)(zu) of the Finance Act, 1994. Such contracts for booking speakers are distinct from event management services, which involve managing or organizing the event itself.
Statutory provision(s): Sections 65(40), 65(41), 65(105)(zu), 65(68), 65(105)(k), Section 66, Section 66A, Section 65A, Section 73 of the Finance Act, 1994.
