The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dismissed a service tax demand of ₹20.36 crore from Jaypee Sports International Limited (JSIL) related to the Formula One race. The tribunal ruled that the race promotion contract between Formula One World Championship (FOWC) and JSIL did not constitute a franchise agreement, thus service tax was not applicable.
