2023 (5) TMI 1025 - AT - Service Tax

Denial of CENVAT credit - service tax paid on hotel halls booked for business activity and hotel stay expenses - Nexus with output services (of market research) - HELD THAT:- The show cause notice was issued by Revenue for denial of CENVAT Credit on above stated input services. Since, the show cause notice was issued by Revenue, burden of proof was on Revenue to establish that the hiring of halls and hotel rooms had no nexus with the output services. Whereas the finding as recorded by both the original and appellate authorities did not indicate that the burden of proof is discharged by Revenue. Both the Order-in-Original and Order-in-Appeal in the present matter are not sustainable.

The above stated two activities are input services for the appellant for providing output services of market research and, therefore, service tax paid on above stated input services is admissible to the appellant for CENVAT Credit - appeal allowed.