2014 (1) TMI 1730 - AT - Service Tax

Disallowance of Cenvat credit - Advertisement and sponsorship services - Appellant advertised themselves as HCL, which is reflective of entire HCL Group - Revenue contended that this is an advertisement for the entire group of HCL and benefit of Cenvat credit can not be extended to the assessee, who is an exporter of software - No dispute about the payment of service tax by the appellant in which case, the advertisement services availed by them have to be held as availed by the appellant himself - Held that - When the service tax for the services along with the consideration of such services stand paid by the assessee, it has to be held that advertisement services have been availed by the assessee, in relation to his business activities in which case Cenvat credit would be available. Also there was no such allegation in the show cause notice. So, as all the services in dispute stand covered by various decisions of the Tribunal but there is some dispute about the production of documentary evidence, the impugned order is set aside. Services on which the credit has been allowed are medical group insurance, legal consultancy services, outdoor catering services and subscription for international taxation. All the said services stand covered by decisions of the Courts including various High Courts. - Appeal disposed of

Issues:
1. Disputed services covered in the appeals filed by the assessee and the Revenue.
2. Dispute over advertisement services and Cenvat credit eligibility.
3. Allegations of advertisement for the entire HCL Group.
4. Validity of Cenvat credit for services paid by the assessee.
5. Lack of specific allegation in the show cause notice.
6. Need for production of documentary evidence.
7. Remand of the matter to the original adjudicating authority.
8. Services covered in the second appeal where credit was allowed.
9. Legal validity of medical group insurance, legal consultancy services, outdoor catering services, and subscription for international taxation.
10. Rejection of Revenue's appeal based on the coverage of services by court decisions.

Analysis:

1. The judgment pertains to appeals filed by both the assessee and the Revenue concerning disputed services. The appeals were disposed of through a common order as they stemmed from the same impugned decision by the Commissioner (Appeals) regarding the allowance and disallowance of Cenvat credit for certain services.

2. In the assessee's appeal, the disputed services included medical group insurance, consultancy services, outdoor catering services, and subscription for international taxation. The contention arose regarding advertisement services and the eligibility of Cenvat credit, with the Revenue arguing that the advertisement was for the entire HCL Group, not just the assessee.

3. The Tribunal acknowledged the appellant's argument that they paid for the advertisement services and the service tax, thus entitling them to avail of the Cenvat credit. It was noted that there was no specific allegation in the show cause notice regarding the advertisement issue, indicating that the impugned order exceeded the notice's scope.

4. Despite the Tribunal recognizing that the disputed services were covered by various Tribunal decisions, a remand was ordered due to a dispute over the production of documentary evidence. The matter was sent back to the original adjudicating authority for a fresh decision based on established legal principles.

5. Concerning the second appeal by the Revenue, services such as medical group insurance, legal consultancy, outdoor catering, and subscription for international taxation were considered. The Tribunal found no fault in the Commissioner (Appeals)'s decision to allow credit for these services, citing legal precedents from different courts supporting the eligibility of such services for credit.

6. Ultimately, both appeals were disposed of accordingly, with the Tribunal emphasizing the need for adherence to legal principles and the production of necessary evidence in the adjudication process.

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