2018 (4) TMI 1385 - AT - Central Excise

CENVAT credit - input services - Event Management Service - Advertisement Service - Tour Operator Service - Coaching and Training Service - Legal Consultancy Service - Travel Agent Service - SIAM Statistical service - Held that - From the nature of service and use thereof it can be seen that all the services are used in or in relation to the manufacture of the final product and/or sales promotion etc. - all the services are necessary for carrying out overall operation of the manufacturing and sales of the goods therefore all the services are clearly covered under the definition of input service as per rule 2(1), of CCR 2004 - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Whether the appellant is entitled to Cenvat credit for various services including Event Management Service, Advertisement Service, Tour Operator Service, Coaching and Training Service, Legal Consultancy Service, Travel Agent Service, and SIAM Statistical Service.

Event Management Service: The appellant argued that this service is necessary for marketing and promotional strategies, not for personal use, and is covered under the inclusion clause of Rule 2(1). Citing relevant case laws, the appellant supported the claim. The Tribunal found the service to be in relation to sales promotion and allowed the credit.

Advertisement Service: The appellant contended that this service is essential for brand advertisement and covered under the inclusion clause of Rule 2(1). Citing case laws, the appellant supported the claim. The Tribunal agreed that the service is related to advertisement and allowed the credit.

Tour Operator Service: The appellant argued that this service was essential for a Europe trip arranged for distributors as a target incentive. The Tribunal found the service necessary and allowed the credit.

Coaching & Training Service: The appellant stated that this service was crucial for imparting knowledge on the provision of Companies Act, 2013. Citing relevant judgments, the appellant supported the claim. The Tribunal agreed that the service was necessary and allowed the credit.

Legal Consultancy Service: The appellant argued that this service was vital for scrutiny of Title Deeds and charges for certified copies. Citing relevant judgments, the appellant supported the claim. The Tribunal agreed that the service was essential and allowed the credit.

Travel Agent Service: The appellant stated that this service was used for air/rail travel booking and visa arrangements for employees in connection with sales promotion. The Tribunal found the service necessary and allowed the credit.

SIAM Statistical Service: The appellant argued that this service was essential for studying market patterns, growth trends, and global sales data in the automobile industry. Citing relevant judgments, the appellant supported the claim. The Tribunal agreed that the service was necessary and allowed the credit.

In conclusion, the Tribunal held that all the services in question were necessary for the overall operation of manufacturing and sales of goods. As per Rule 2(1) of the Cenvat Credit Rules, 2004, the services were deemed to be covered under the definition of input service, making the Cenvat credit admissible. The impugned order was set aside, and the appeals were allowed.