2016 (9) TMI 286 - AT - Central Excise

Cenvat credit - service of Event Management and Video Tape Production - used in or in relation to the manufacture of goods - credit availed during the inauguration of new plant and video tape have been used to introduce a new manufacturing facility - Held that - it is found that the Event Management was organized to showcase there new plant and its production capacities to the prospective buyers. It was organized within the same plant and therefore it can be considered to be part of the sales promotion activities. Therefore, the credit for the said services would be admissible to the appellant. - Decided in favour of appellant

Summary

Issues:
1. Availment of credit of service of Event Management and Video Tape Production.
2. Denial of credit on the grounds of non-relation to the manufacture of goods.
3. Location of the new plant and its relation to the existing unit.
4. Time-barred demand for the show-cause notice.
5. Clarification provided by the jurisdictional Assistant Commissioner.
6. Consideration of Event Management and Video production as sales promotion activities.

Analysis:
1. The appellant, M/s Monarch Catalyst Pvt. Ltd., availed credit for Event Management and Video Tape Production services. The notice sought to deny this credit, alleging non-usage in or in relation to the manufacture of goods.

2. The appellant argued that the services were utilized during the inauguration of a new plant within their existing facility. The counsel contended that prospective buyers were shown the new facility during the event.

3. The Revenue's Assistant Commissioner claimed the new plant was at a different address, requiring clarification. However, a subsequent clarification confirmed that the new plant was part of the same factory, not a separate entity.

4. The appellant raised the issue of the demand being time-barred, as the show-cause notice was issued beyond the statutory limitation period.

5. The clarification from the jurisdictional Assistant Commissioner confirmed that the new plant was within the same factory premises, supporting the appellant's claim for credit.

6. The tribunal concluded that the Event Management was a sales promotion activity showcasing the new plant to prospective buyers. As it was organized within the same plant, the credit for the services was deemed admissible, leading to the setting aside of the impugned order and allowing the appeal.