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TMI Blog2016 (3) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... “Once the cost incurred by the service has to be added to the cost, and is so assessed, it is a recognition by Revenue of the advertisement services having a connection with the manufacture of the final product. This test will also apply in the case of sales promotion.” Therefore keeping in view the judgments cited (supra) the expenses incurred on the membership of the business club is an “input service” and appellant can legally take Cenvat Credit of the expenses incurred on the membership of the club. - Decided in favour of assessee - Appeal No. E/1262/11- Mum - Final Order No. A/85555/2016-WZB/SMB - Dated:- 4-2-2016 - MR. S.S. GARG, MEMBER (JUDICIAL) For the Petitioner : Shri H.G. Dharmadhikari, Advocate For the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner (Appeals) who confirmed the Order-in-Original and now the appellant is before this Tribunal. 3. Ld. Counsel for the appellant submitted that the order passed by the Commissioner (Appeals) is bad in law and is liable to be set aside on the ground that the membership of the business club is directly related to the business of the company and therefore fall in the definition of input service. He further submitted that any business activity prior to or during the course of post manufacture of final product has nexus with the business and such services is in relation to those activities are input services within the terms of Rule 2(l) of CENVAT Credit Rules, 2004. He further submitted that the subscription charges towards th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irectly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal. 6. He further submitted that the club and association service is used in or in relation to business activity. In support of his submission, he relied upon the following judgment:- 1) CCE vs. Ultratech Cement Ltd. 2010 (20) STR 577 (Bom) 2) Willis Processing Services (I) P. Ltd. vs. CST 2015 (38) STR 169 3) Mangalam Cement Ltd. 2015 (38) STR 635 4) Coca Cola P. Ltd. 2009 (15) STR 657 7. On the other hand, ld. AR has cited the decision in CCE vs. Manikgarh Cement 2010-TIOL-720-Hon'ble High Court-MUM-ST. 8. I have gone through the various judgments cited by both the sides. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly related to the promotion of the business of the appellant. I also find that the expenses incurred on membership of the club are forming part of the assessable value and as per the judgment in the case of Coca Cola P. Ltd. (supra) wherein the Hon'ble High Court in para 43 has observed that Once the cost incurred by the service has to be added to the cost, and is so assessed, it is a recognition by Revenue of the advertisement services having a connection with the manufacture of the final product. This test will also apply in the case of sales promotion. Therefore keeping in view the judgments cited (supra), I am of the considered opinion that the expenses incurred on the membership of the business club is an input service an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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