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TMI Blog2023 (8) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994 and also imposed equivalent penalties under Section 78 of the Finance Act, 1994. 2. Briefly the facts of the present case are that the appellant are registered with the Central Excise Department, Rohtak under Service Tax Rules 1994 for providing taxable output services of 'Business Auxiliary services'. During the course of Audit of its records by the Audit officers of Central Excise Commissionerate Rohtak (Haryana) for the period 2004-2009, it was observed that the appellant were the distributor of M/s Wire and Wireless (India) Ltd (Formerly known as Siti Cable Network Ltd) and had entered into an agreement with them to manage and run the cable television network business owned and within the prescribed jurisdiction of Rohtak. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and for recovery of irregularly availed CENVAT Credit of Rs. 84,71,295/ under Rule 14 of the CANVAT Credit Rules, 2004 read with section 73 of the Finance Act, 1994 along with interest and also imposed equivalent penalty under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 78 of the Act. Hence the present appeal. 4. Heard both the parties and perused the case records. 5. Ld. Counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and law and the binding judicial precedents. She further submitted that the demand has been confirmed on the ground that the appellant had wrongly availed the Cenvat credit of the tax paid to the broadcas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices received by the appellant are necessary for managing the cable network of WWIL which is evident from the Agreement entered into by the appellant with broadcasters for performing the services to WWIL. She further submitted that the appellant is utilising the broadcasting services for rendering the output service i.e., BAS. She also submitted that there is no agreement between WWIL and the broadcasting agencies and the agreements between appellant and various broadcasting agencies makes no reference of the Agreement between WWIL and the Appellant and therefore as per the Ld. Counsel, the agreements entered with the broadcasting agencies were not on behalf of WWIL but on its own account by the Appellant. She further submitted that the inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied upon the decision in the case of Bharat Hotels Limited vs Commissioner Central Excise (Adjudication), 2018 (2) TMI 23 - Delhi High Court. 7. As far as the interest and penalties, the Ld. Counsel submitted that when the demand of cenvat credit under the Act is unsustainable, no interest and penalties can be imposed. 8. On the other hand, the Ld. AR reiterated the findings in the impugned order. 9. After considering the submissions of both the parties and perusal of material on record, we find that the appellant has entered into an agreement dated 01.04.2005 with Wire and Wireless India Ltd. (WWIL) to manage and run the cable television network on behalf of WWIL within the jurisdiction of Rohtak and for such services the appellant woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pto the place of removal and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal" If we analyse the definition of 'Input Service' as provided (supra), we find that the following conditions needs to be sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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