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2014 (10) TMI 452 - AT - Service TaxDenial of CENVAT Credit - Outdoor Catering Service - Convention Service - Event Management Service - Market Research Service - Held that:- The credit of Service Tax paid on outdoor catering service cannot be denied since reclassification of services is to be considered at the receiving end. Therefore, what is required to be considered at the receiving end is whether Service Tax was paid or not; and whether the services received were covered under the definition of input service or not. In the absence of clear finding whether services received were covered by the definition of input service, the ground on which credit denied cannot be sustained. In any case, after going through the invoices, I find that services were received for business promotion and sales promotion of the appellant and therefore, credit of Service Tax paid cannot be denied. Credit of Service Tax paid on this service cannot be denied since reclassification of service is to be considered at the receiving end. What is required to be considered at the receiving end is whether the service was covered by input service under Cenvat Credit Rules or not; and under which category invoices have been issued. In any case, invoices were issued by two Hotels in relation to activities of sales promotion/business of the appellant. Therefore, appellant is eligible for credit of Service Tax paid. - entire amount is in relation to one invoice. Since ‘event management service’ was rendered for their customers and employees and it was done for sales promotion/business of the appellants, I consider that credit of Service Tax paid on this service cannot be denied. Credit of Service Tax paid amounting to ₹ 62,424 has been denied on Market Research Service. Learned Chartered Accountant submits that company conducted a survey to find out about women employees leadership. I do not understand and appreciate on what basis and under which manner this service can be covered by definition of ‘input service’. I find this activity undertaken by appellant to understand the position of women in society has nothing to do with the business. This being the case, credit has been correctly denied. - Decided partly in favour of assessee.
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