2020 (3) TMI 744 - AT - Service Tax

CENVAT Credit - Input services - event management service - HELD THAT - A similar issue has been considered by the Division Bench of this Tribunal in M/S. HONDA MOTORCYCLE SCOOTER INDIA PVT. LTD. VERSUS CCE, DELHI-III 2016 (8) TMI 308 - CESTAT CHANDIGARH . It is not in dispute that event management service has been used by the Appellant for promoting their brand value as recorded by both the authorities below in the respective orders. There are no merits in the impugned order - appeal allowed.

Summary

Issues:
- Entitlement to avail CENVAT Credit on event management service.

Analysis:
The judgment deals with appeals filed against an Order-in-Appeal passed by the Commissioner (Appeals-III), CGST & CX, Mumbai. The Appellants, engaged in providing taxable services mainly exported out of India, filed cash refund claims of accumulated CENVAT Credit under Rule 5 of CENVAT Credit Rules, 2004. The Commissioner (Appeals) allowed cash refund on various input services except event management service, deeming it inadmissible due to lacking nexus with the output service provided. The Appellant argued that organizing events promoted their brand value, directly linked to the output service. Citing a precedent in Honda Motorcycle & Scooter (I) Pvt. Ltd Vs CCE Delhi-III, the Appellant contended for credit eligibility.

The Revenue supported the Commissioner's findings, while the Appellant emphasized the nexus between event management service and brand promotion. The Tribunal, after considering arguments and records, addressed the core issue of CENVAT Credit entitlement on event management service. Referring to the precedent in Honda Motorcycle & Scooter (I) Pvt. Ltd's case, where a similar issue was resolved, the Tribunal found that the event management service was indeed utilized by the Appellant for brand value promotion, as acknowledged by both lower authorities. Consequently, the Tribunal disagreed with the impugned order, setting it aside and allowing the appeals with any consequential relief as per law.

In conclusion, the judgment clarifies the eligibility of Appellants to claim CENVAT Credit on event management services, emphasizing the importance of a direct nexus with the output service. By referencing a relevant precedent, the Tribunal overturned the Commissioner's decision, recognizing the legitimate use of event management services for brand promotion. This ruling highlights the significance of establishing a clear connection between input services and the services provided, ensuring a fair application of CENVAT Credit rules.