Contract To Hire Global Speakers For Media Summit Not Subject To Service Tax As 'Event Management' : Supreme Court

In a major relief for the media and event organizers, the Supreme Court on Friday (January 16) held that the fees paid to high-profile speakers through international booking agencies do not attract Service Tax under the category of "Event Management Service".

A bench of Justices JB Pardiwala and KV Viswanathan set aside the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) order which upheld the tax demand of over ₹60 lakhs on Hindustan Times Media Ltd. for its annual Leadership Summit, where it called international speakers including former UK PM Tony Blair, Former US Vice President Al Gore, and renowned astronaut Jerry Linenger through international booking agencies.

The Court held that HT Media's contract with the international booking agencies was solely for securing speakers for their event and did not constitute 'event management' services. Since service tax applies only to event management services, booking a speaker through an agent does not attract service tax.

“The tenor of the contracts and the declaration given by the agents clearly indicate that the services rendered by such agents to the assessee were in the nature of booking the speakers for the event to be organized by the assessee. The contracts were entered into with the agents qua each speaker laying down the modalities of his/her visit and consideration for the same. Such services cannot be equated with “event management service” which has been statutorily defined to mean “any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports, marriage or any other event and includes any consultation provided in this regard”. The contract of the asseessee with the booking agents was not for “management of an event” but for booking of the speaker.”, the court held.

The case pertained to Service Tax demands for the period between October 2009 and March 2012. HT Media had organized its annual "Hindustan Times Leadership Summit," featuring global figures like former UK Prime Minister Tony Blair, former US Vice President Al Gore, and astronaut Jerry Linenger. The company engaged professional lecture booking agencies like the Washington Speakers Bureau and the Harry Walker Agency to secure these speakers at their event.

The tax department contended that the payments made to these agencies constituted a "taxable service" under Section 65(105)(zu) of the Finance Act, 1994, which covers services provided by an "event manager." The department argued that securing the speakers was an integral part of "planning, promotion, organizing or presentation" of the summit, and therefore was liable to be categorized as a service provided by an event manager.

Aggrieved by the CESTAT's decision upholding the demand for service tax, HT Media moved to the Supreme Court.

Disagreeing with the impugned order, the judgment authored by Justice Pardiwala observed that the mere participation of speakers in an event cannot be equated with the management of an event, as neither the speakers nor the booking agents are involved in planning, promoting, organizing, or conducting the event.

“The speaker does not plan, promote, organize or present the event. Thus, the speaker, is neither an “event manager” nor does he provide an “event management service”. Similarly, the booking agent who merely books the speaker also acts in the capacity of an agent or representative for agreeing to the terms of the speakers' presence at the event. Participation in the event cannot be considered as management of the event. This precisely is the fundamental error committed by the revenue as well as by the Tribunal while imposing Service Tax on the service in question under the category of “event management service”.”, the court observed.

“what is sought to be covered is the service of management or organizing of the event, and the revenue cannot be allowed to stretch the application of such a clause beyond its contours.”, the court added, emphasizing that "individual contracts for booking of persons required for participation in the event are not commonly understood as “event management” contracts."

The appeal was allowed, and the tax demand was set aside.

Cause Title: HT MEDIA LIMITED VERSUS PRINCIPAL COMMISSIONER DELHI SOUTH GOODS AND SERVICE TAX

Citation : 2026 LiveLaw (SC) 55

Click here to download judgment

Appearance:

For Appellant(s) : Mr. Ashok Dhingra, Adv. Mr. Karan Bharihoke, AOR Ms. Sonia Gupta, Adv.

For Respondent(s) : Mr. V.C. Bharathi, Adv. Mr. Gurmeet Singh Makker, AOR Mr. S.K.singhania, Adv. Mr. P.V. Yogeshwaran, Adv. Mr. Annirudh Sharma II, Adv.