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2025 (1) TMI 936 - AT - Service TaxCENVAT Credit - input services - advertising agency services - Commercial Training and Coaching Services - exemption vide mega N/N. 12/2012 - HELD THAT - The decision in career Point Infosystems Pvt. Ltd. Vs. CCE Udaipur 2019 (2) TMI 768 - CESTAT NEW DELHI is also perused on which reliance has also been placed by the Commissioner (Appeals). The Tribunal observed impugned services are Business Auxiliary Service which are not taxable hence not eligible for taking audit are therefore held to be an erroneous finding in the given facts and circumstances. The advertising agency service received by the appellant was the eligible input service for Cenvat credit and as such credit is held to have been rightly availed by the appellant. And finding no difference in facts of the present case the order under challenge is set aside - Appeal allowed. 1. ISSUES PRESENTED and CONSIDERED The core legal questions addressed in this judgment are:
2. ISSUE-WISE DETAILED ANALYSIS Issue 1: Eligibility of Cenvat Credit on Advertising Services Relevant legal framework and precedents: The relevant legal framework involves the interpretation of Rule 2(l) of the Cenvat Credit Rules, 2004, which defines "input service" and includes advertising services within its ambit. The precedents include previous Tribunal decisions such as those in the cases of M/s Allen Career Institute and M/s Bansal Classes Pvt. Ltd., which have established that advertising services are eligible for Cenvat credit. Court's interpretation and reasoning: The Tribunal emphasized that advertising services are explicitly included in the definition of input service under Rule 2(l) of the Cenvat Credit Rules, 2004. The court noted that the appellant engaged advertising agencies to promote its services, and the service tax paid on these services qualifies as input service credit. Key evidence and findings: The key evidence included invoices from advertising agencies showing service tax charged on services rendered. The Tribunal found that these invoices and the agreements between the appellant and the agencies demonstrated that the appellant was the recipient of the advertising services. Application of law to facts: The Tribunal applied Rule 2(l) of the Cenvat Credit Rules, 2004, to the facts, concluding that the advertising services used by the appellant to promote its commercial coaching and training services are eligible for Cenvat credit. The Tribunal found that the appellant's actions were consistent with the law. Treatment of competing arguments: The Departmental Representative acknowledged that the issue had been previously decided in favor of the appellant and had attained finality. The Tribunal considered this acknowledgment and the consistent application of the law in similar cases as persuasive. Conclusions: The Tribunal concluded that the appellant is entitled to Cenvat Credit on the service tax paid for advertising services, as these services qualify as input services under the Cenvat Credit Rules, 2004. Issue 2: Conformity of Cenvat Credit Utilization Relevant legal framework and precedents: The framework involves the Cenvat Credit Rules, 2004, particularly the definition of input service and the conditions for availing credit. The Tribunal referenced past decisions that upheld the appellant's right to utilize Cenvat credit for advertising services. Court's interpretation and reasoning: The Tribunal reasoned that the appellant's utilization of Cenvat credit for advertising services aligns with the inclusive definition of input service and the established trade practices in the industry. Key evidence and findings: The Tribunal relied on evidence such as the appellant's invoices and agreements with advertising agencies, which clearly indicated the nature of services received and the service tax paid. Application of law to facts: The Tribunal applied the law to the facts by affirming that the appellant's use of Cenvat credit for advertising services was appropriate and lawful, given that these services directly related to the appellant's output services. Treatment of competing arguments: The Tribunal noted the Departmental Representative's concession that the issue had been resolved in favor of the appellant in previous cases, which supported the appellant's position. Conclusions: The Tribunal concluded that the appellant's utilization of Cenvat credit for advertising services was in conformity with the law and upheld the appellant's entitlement to such credit. 3. SIGNIFICANT HOLDINGS Preserve verbatim quotes of crucial legal reasoning: "The definition of input service under Rule 2(l) of the CCR, 2004 provides for credit on any service used for providing the output service. In addition, in the inclusive part of such definition, various activities have been included in which also the service tax is available as input credit. The inclusive portion specifically mentions advertising services." Core principles established:
Final determinations on each issue:
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