2017 (9) TMI 1645 - AT - Central Excise

CENVAT credit - subscription to various magazines of different associations - hotel accommodation used for the business of appellant - Held that - Subscription to journals of different associations being a relevant input for the purpose of promotion and carrying on business that is essentially an input, credit cannot be denied. Hotel accommodation - Held that - Revenue has not brought out whether it would fall under the exception category of inadmissibility - in absence of any evidence to show that the expenses are of personal nature and not related to any output or output service, the credit of service tax paid on such service availed is undeniable. Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Mumbai allowed the appeal regarding disallowance of cenvat credit on service tax paid for subscription to magazines of different associations and hotel accommodation used for business purposes. The tribunal held that subscription to journals is a relevant input for business promotion and cannot be denied cenvat credit. The tribunal also stated that in absence of evidence showing personal nature of hotel expenses, cenvat credit on service tax paid for hotel accommodation is permissible.