2017 (11) TMI 1568 - AT - Central Excise

CENVAT credit - Event Management services - period April 2005 to August 2009 - Held that - It is also not disputed that cenvat credit availed by appellant for this period is based upon the invoices raised by their Head Office as an ISD - In my view since the Event Management Services have organised an event for the appellant s brand Essar Steel Cenvat Credit availed by them and subsequently distributed to other units as also to this unit seems to be in consonance with the law - reliance placed in the case of Castrol India Limited 2013 (9) TMI 709 - CESTAT AHMEDABAD where it was held that The services had to be held as relatable to business of manufacturing only since the services are directly relatable to promotion of goods - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
1. Cenvat credit availed on service tax paid by a service provider under Event Management services for the period April 2005 to August 2009.

Analysis:

Issue 1: Cenvat Credit on Event Management Services
The appeal concerned the decision on the cenvat credit availed of service tax paid by a service provider under Event Management services for the mentioned period. The appellant had availed cenvat credit based on the distribution of Service Tax by their Head Office as an Input Service Distributor (ISD). The Revenue contended that the Event Management services were related to promoting excellence in infrastructure projects and not the manufacturing sector. The first appellate authority reversed the adjudicating authority's decision, emphasizing that the award was meant for promoting excellence in infrastructure projects, not the goods manufactured by the appellant. The appellant argued that the event was for promoting their brand and the product manufactured by them, which is used by infrastructure industries. The Tribunal referred to a previous case involving Castrol India Limited and held that event management services directly related to the promotion of goods are eligible for cenvat credit.

Decision:
After considering the arguments and evidence presented, the Tribunal found that the service tax payment by the service provider for Event Management services was not disputed. It was acknowledged that the cenvat credit availed by the appellant was based on invoices from their ISD Head Office. The Tribunal concluded that since the Event Management Services organized an event for the appellant's brand, the cenvat credit availed and distributed by them was in accordance with the law. Referring to the Castrol India Limited case, the Tribunal reiterated that services directly related to the promotion of goods are eligible for cenvat credit. Consequently, the impugned order disallowing cenvat credit for the mentioned period was set aside, and the appeal was allowed.

This comprehensive analysis highlights the key arguments, legal interpretations, and the final decision made by the Tribunal regarding the cenvat credit on Event Management services for the specified period.