2015 (6) TMI 1080 - AT - Central Excise

Denial of CENVAT credit - Mandap Keeper service - service used to organize the meeting and events for promotion of their product such as launch of new vehicle, business meets, conference etc - inclusive in the definition of input service under the head sales promotion activities - Held that - on perusal of invoices raised by Hotel Maratha, Mumbai to the appellants and also the internal approval note of the appellant, indicating the purpose for which the payment has been made it is found that for launching a new swift desire car, the said expenditure has been incurred by the appellant, which is nothing but the sales promotion activities of their product, which falls under the inclusive part of the definition of input service - CENVAT credit allowed on mandap-keeper service. Convention service - CENVAT credit denied on the ground that the conference, workshops and seminars etc., are of general nature which are not related to the automobile industry - Held that - in the invoices, the description of service has been mentioned as delegate fees for two participants three day VIP Programme on Vehicle Dynamics and Hardware Loop from 4.4.2012 . Further, in the invoice dated 22.3.2011, the said service provider has described the service as Proficiency Improvement Programme on REACH registration, devaluation, authorization and registration of chemicals - obligation for automotive industry from 7th to 8th June, 2010 . Perusal of the invoices makes the position clear that the services indicated therein are confirming to the taxable service i.e. Coaching and Training, which is specifically finding place in the definition of input service for the purpose of taking the CENVAT credit - CENVAT credit allowed on convention service. Appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
1. Disallowance of cenvat credit on Mandap Keeper Service
2. Disallowance of cenvat credit on convention service

Analysis:

Issue 1: Disallowance of cenvat credit on Mandap Keeper Service
The appeal concerns the denial of cenvat credit on Mandap Keeper Service by the authorities. The appellant argued that the service was used for organizing meetings and events to promote their products, falling under the definition of input service for sales promotion activities. The credit was denied on the grounds that the service was not directly or indirectly related to the manufacture or clearance of the final product and that it was primarily used for personal consumption. The Tribunal reviewed the invoices and internal approval notes, noting that the expenditure was incurred for sales promotion activities, which is an inclusive part of the definition of input service. Referring to a previous order in favor of the appellant, the Tribunal found the denial of cenvat credit not in line with the Cenvat statute. Consequently, the impugned orders were set aside, and the appeals were allowed in favor of the appellant.

Issue 2: Disallowance of cenvat credit on convention service
In this issue, the denial of cenvat credit on convention service was challenged. The credit was rejected on the basis that the conferences, workshops, and seminars were of a general nature not related to the automobile industry. Upon examining the invoices from the service provider, the Tribunal found that the services described were related to Coaching and Training, falling within the definition of input service for the purpose of cenvat credit. The Tribunal concluded that the denial of cenvat credit on the convention service was unjustified, setting aside the impugned order and allowing the appeals in favor of the appellants.

In conclusion, all the appeals were disposed of in the above terms, with the Tribunal ruling in favor of the appellants regarding both the disallowance of cenvat credit on Mandap Keeper Service and convention service.