CENVAT Credit Denied on Advertising and Tour Services Due to Wrong Unit Claims and Invalid Documentation

CESTAT denied CENVAT credit claims totaling Rs.80,95,227/- for advertising and tour operator services. Credit was disallowed on three grounds: advertising services related to products manufactured at a different unit than where credit was claimed; tour operator services fell under the exclusion clause of "input service" definition; and certain invoices were not in appellant's name, violating Rule 9(2) requirements. Despite appellant's pre-notice reversal of credits, CESTAT upheld extended period of limitation and penalties under Rule 15(2) CCR read with Section 11AC(1)(c), finding intentional suppression of material facts. The tribunal affirmed the original order, dismissing the appeal and requiring appropriation of reversed credits to government account. .....

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