2011 (3) TMI 1373 - KARNATAKA HIGH COURT

Cenvat credit - assessee availed input service tax credit among other things for the function arranged for Kannada Rajyostava Day and colour photography expenses in respect of the inaugural function of Kengeri Police Station - expenses incurred in respect of Catering service and Mediclaim Insurance for the said function has been accepted. But they have rejected the input service tax credit on Shamiyana services and photography services – Held that:- If a Multi National Company celebrates the 1st November as a Karnataka Rajosthava Day and spends lavishly for their employees and also sought participation in the said function by the jurisdictional police and on that momentous occasion, the expenses incurred for taking photography or providing Shamiyana service and inaugural of police station it cannot be said that such expenses have no nexus or integral connection with the manufacture of final product as well as business of manufacture of final products. Keeping in view the sentiments of the particular State the problems which are faced in ail these establishment in a Linguistic State and as a reasonable employer if he wants to satisfy the aspirations of the people in a lawful manner, he cannot be found fault with, expenses incurred by the assessee would fall within the definition of input service and they are entitled to CENVAT credit, substantial question of law is answered in favour of the assessee and against the revenue