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TMI Blog2021 (3) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed. Event Management Services - denial on the ground of no nexus with output service or manufacture - February 2013 December 2015 - HELD THAT:- These services have been used for conducting the inaugural ceremony of the newly set up manufacturing unit where the management team travel to the factory premises and it also involved advertisement, designing, promotional video and pandal services wherein not only the employees of the company but its customers also attended and this service has also been held to be Input Service - Credit allowed. Management, Maintenance and Repair services - denial on the ground that Since diesel is a consumable, credit on the same cannot be allowed - February 2013 December 2015 and January 2016 June 2017 - HELD THAT:- This pertains to the management, maintenance and repair of DG sets which is required for generation of electricity for carrying out the manufacturing activity and once the hiring of DG sets has been allowed by the Department then it is necessary to allow the credit of service tax paid on running expenses and maintenance charges as diesel is an input which is essential for the functioning of the DG sets hence this service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the present case are that the appellant is a wholly owned subsidiary of M/s Honda Motor Company Pvt. Ltd., Japan and is engaged in the manufacture and sale of two-wheelers. The appellant is registered with the Central Excise Department and undertakes the manufacturing activity in its registered premises and availed various input services which aid in the manufacturing activity in one way or the other. During the disputed period, ranging from February 2013 to June 2017, the appellant was availing certain input services and was also availing credit of the service tax paid on the same. The Department entertained the view that the appellant is not entitled to avail credit on certain input services as they do not qualify as input service as defined under Rule 2(l) of CCR, 2004. The detail of the disputed services and the ground for disallowing the credit thereof is given in the table below: Disputed period Category of service Amount of credit Reasons of denial in the impugned order February 2013 December 2015 Erection, Commissioning and installation (crane Services) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icating authority disallowed and confirmed the demand of the irregularly availed CENVAT credit amounting to ₹ 58,58,096/- along with interest and also imposed equal penalty under Rule 15(2) of the CCR, 2004. Aggrieved by the said order, the appellant filed appeal before the Commissioner who allowed the CENVAT credit on Hotel Inn, Guest House and Club services and the interest and penalty thereon but upheld the Order-in-Original with regard to the remaining input services amounting to ₹ 34,38,364/- for the reason stated in the table above. 3. Heard both the parties and perused the records of the case. 4. Learned Counsel for the appellant submitted that the impugned order denying the CENVAT credit of the service tax paid on disputed services is not sustainable in law as the same has been passed without properly appreciating the definition of Input Service and the various judicial precedents on these disputed services. She further submitted that as per Rule 3 of CCR, a manufacturer or service provider is eligible to avail credit of duty paid on input or capital goods or input service and the impugned services availed by the appellant are all used in relation to manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (dealers in this case) were attendees of the said event. She further submitted that this kind of activity is covered in the inclusive portion of the definition of Input Service which covers services used in relation to advertisement and sales promotion activities, market research etc. She further submitted that this service was held to be Input Service in the appellant‟ own case by the CESTAT reported in 2019 (4) TMI 927-Chandigarh. She also submitted that this service has been held to be Input Service by other decisions of the Tribunal which are as under: IBM India Pvt. Ltd. Vs CCE, Bangalore- LTU, 2017 (35) STR 384 (Tri. Bang.) Monarch Catalyst Pvt. Ltd. Vs CCE, 2016 (44) STR 96 (Tri. Mumbai) Castrol India Ltd. Vs CCE, Vapi, 2013 (30) STR 214 (Tri. Ahmd.) (iii) Management, Maintenance and Repair Services - As far as this service is concerned, learned Counsel submitted that under this service, the appellant has availed the services of management, maintenance and repair for the DG sets installed in its premises during the period February 2013 to December 2015 for generation of electricity for carrying out the manufacturing activity. She also submitted that v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the CENVAT credit of input services and moreover, the eligibility to avail credit hinges on the determination whether the impugned service qualifies to be an input service and such determination involves interpretation of law and mala fide cannot be alleged against the appellant. 5. On the other hand, learned AR defended the impugned order and submitted that the appellant is not entitled to avail the credit on disputed input services as the same do not qualify as Input Service defined under Rule 2(l) of CCR, 2004. He further submitted that mainly the CENVAT credit has been denied on account of nexus with the output service or manufacture. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the appellants have availed the impugned services and use it in relation to manufacture and the appellant has been able to establish sufficient nexus with the manufacturing activity as far as cranes services are concerned which the Department has misunderstood as erection, commissioning and installation service. Further, I find that this service of hiring of crane has been held to be Input Service in a manufacturing unit like the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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