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TMI Blog2013 (9) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... section 66A of Finance Act, 1994 and they took CENVAT credit on the said amount. 2. Further, they were sending their employees to various universities abroad to undergo various training courses in Universities abroad for which payments were made to the Universities and paid on service tax such payments during the period 2006-07 to 2010-2011 for an amount of Rs.23,15,614/- under section 66A of Finance Act, 1994, and took CENVAT credit of the said amount also. 3. Revenue objected to these credits mainly on the ground that these services could not be considered as input services and therefore issued show-cause notice for recovering the said amounts. On adjudication a total amount of Rs.1,29,54,035/- stands confirmed against the appellant alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is that the appeal may be admitted without any pre-deposit. 6. Opposing the prayer, the learned AR for Revenue submits that from the agreement with JD Power Associates, Singapore and JD Power, Asia Pacific, Singapore, it is very clear that the survey was done to assesses the performance of the dealers and not regarding the market acceptability of the product itself and therefore the survey had no direct nexus with the manufacture or sales of the product. Further he points out that out of Rs. 9.63 crores paid to the foreign service provider for market research, Rs. 5.04 crore was actually recovered from the dealers on whom survey was conducted and the reports were also furnished to them. Therefore, when the cost of the service is not inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arding the performance of the dealers in sale of product and in the matter of after sales service, we are of the prima facie view that it will form part of input service under Rule 2(l) of the CENVAT Credit Rules, 2004. However, in the case, that portion of the service for which the cost has been recovered from the dealers, we are prima facie of the view that applicant cannot take CENVAT credit since the applicant did not incur the cost but only routed payments from the dealers to the service provider abroad. 10. In the case of services received from the Universities, we are not in agreement with the argument of learned AR that this will not form part of the input service. 11. In view of discussions as above, we direct the applicant to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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