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2014 (8) TMI 654 - AT - Central ExciseDenial of CENVAT Credit - input services on advertisement charges - product manufactured by the other unit - Held that:- Credit cannot be denied merely because the service tax on advertisement charges was paid by the Unit-I for the advertisement of product of Unit-II, while both are under the umbrella of the same company. At any event, Unit- I could be registered as input service distributor under the Rules 2004. The Tribunal held that credit should not be denied for such procedural infraction when substantial part of the rule is complied. The another aspect of this case is that Unit-I, appellant herein, is eligible to avail the credit on service tax paid on advertisement charges. The reason for denial of the credit is that the contents of the advertisement is in respect of product of other unit. It is contended by the appellant that the advertisement charges incurred by the appellant had been added to the cost. The Hon'ble Bombay High Court in the case of M/s. Coca cola India Pvt. Ltd. [2009 (8) TMI 50 - BOMBAY HIGH COURT] allowed the credit of service tax paid on advertisement. In that case, the appellant manufactured non-alcoholic beverage bases known as "concentrates". The concentrate was sold by the appellant to bottling companies who, in turn, sold aerated beverages from the concentrates to distributors who, in turn, sold to retailers for the ultimate sale to the consumer. The advertisement and sales promotion activities including market research was undertaken by the appellant. Revenue denied the credit on the ground that the advertisement did not relate to "concentrates" manufactured by the appellant. - it is apparent that input service credit on advertisement charges are related to the business of the assessee. Taking into account of the facts and circumstances of the present case, in so far as both the units are under the same manufacturer and the input service credit is related to the advertisement charges, "relating to business" of the same assessee, there is no reason to deny the input service credit to the appellants - Decided in favour of assessee.
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