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TMI Blog2011 (7) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... , Advocate, for the Appellant. Ms. Monica Batra, SDR, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. The appellants are manufacturers of motor vehicles and parts thereof chargeable to central excise duty under Chapter Heading No. 87 of the Central Excise Tariff. They availed Cenvat credit under Cenvat Credit Rules, 2004 of central excise duty paid on inputs and capital goods and of service tax paid on input services used in or in relation to the manufacture of their final products. In the course of audit of their records in November, 2007, it was noticed that the appellants during the period 2005-2006 and 2006-2007 had availed Cenvat credit of Service tax paid on the Event Management Services utilized for organizi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals), the Commissioner (Appeals) vide impugned order-in-appeal dated 12-5-2010 upheld the Addl. Commissioner s order and dismissed the appeal. It is against this order of the Commissioner (Appeals) that the present appeal along with stay application have been filed. 4. Heard both the sides in respect of stay application. 5. Shri Ravi Raghavan, Advocate, ld. Counsel for the appellant, pleaded that the disputed amount of Cenvat credit pertains to Event Management Services availed for celebration of Annual Day functions, that celebration of Annual Day in which all the employees participate along with their family members is an activity related to business, as in course of such functions, the employees of different departments get an op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, as the appellant throughout the period of dispute, were filing ER-I Returns wherein the fact of availment of Cenvat credit of service tax paid on Event Management Services has been disclosed, that in view of this, the appellant have a strong prima facie case and hence, the requirement of pre-deposit of Cenvat credit demand, interest and penalty may be waived for hearing of the appeal. 6. Mrs. Monika Batra, ld. Departmental Representative, opposing the appellant s plea for waiver from the requirement of pre-deposit pleaded that the service in question, being in respect of Event Management Services had been availed in course of Annual Day Function for the employees, that organizing Annual Day Function for the employees has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly or indirectly in or in relation to the manufacture of final product, but also covers various services used in relation to the business of manufacture of final products, the term activities related to business covers the activities integrally connected with business of manufacture of final products whether before or after the manufacture of final products and if the activities not integrally connected with the business of manufacture of final products, the services would not qualify to be input services, that looked at from this criteria, the Event Management Service availed for organizing Annual Function being the activities in relation to the welfare activities cannot be treated as the activities integrally connected with the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra). The Hon ble Bombay High Court in the case of CCE v. M/s. Ultratcch Cement (supra) while holding that the expression activities related to business in definition of input services postulates activities which are integrally connected with the business of assessee has held that the activities which are not connected with the business of manufacture of final products would not qualify to be input services under Rule 2(l) of Cenvat Credit Rules, 2004. The question as to whether the activities of employee welfare can be said to have nexus with the business of manufacture of final products has been answered in negative by the Hon ble Bombay High Court in the case of CCE, Nagpur v. Manikgarh Cement (supra). In view of this, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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