2012 (12) TMI 267

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..... nt for club membership is allowable as business expenditure inasmuch as club membership is used for convening business meetings and to facilitate vital decisions making, exclusively cordial ambience is essential for creating calm, composed, peaceful and tranquil mind set of the clients and the customers - relatable activities of the business. Hence, the same are covered under the definition of inp .....

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..... credit to the appellant - impugned order is set aside appeal is allowed.
MS. ARCHANA WADHWA, J. Appearance: Shri R. Santhanam , Advocate for the Appellants Shri R.K. Mathur, DR for the Respondent Per Archana Wadhwa: The appellants are engaged in the manufacture of polyester film falling under Chapter 39 of the Central Excise Tariff. They are registered with the Service Tax department for .....

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..... th imposition of penalty of identical amount. 3. After hearing both sides, I find that as per definition of input services appearing in Rule 2(l) of Cenvat Credit Rules, 2004, input services used for providing any output service or used by the manufacturer in or in relation to the manufacture of final products is covered. Further, the said definition includes various services used in relation to .....

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..... and conference with the customers which is admittedly in relation to the business activities. By taking into account various decisions of the Hon ble Supreme Court as also of various other Courts; the Bench observed that club Membership expenditure are business expenses and are allowable deductions. Though the above decision is under the Income Tax Act, but the ratio arrived at by the Tribunal la .....

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..... nnection with their business activity though it was one time expenditure incurred on housing the striking employees and safeguarding the material lying in the open by the workers during strike. The fact that it was one time expenditure will not change the fact that said services were availed in connection with the business activities. Accordingly, I hold that the same are available as credit to th .....

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