TMI Blog2013 (8) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... urred the advertisement expenses for the benefit of the mutual funds. It is also contended that the applicants outward service is only investment and advisory services rendered to the mutual funds, for which advertisement cannot be input service.- prima facie case is against the assessee - pre-deposit of Rs. 25 Lacs ordered - stay granted partly. - ST/356/2011 - - - Dated:- 3-6-2013 - Shri. P.K. Das and Shri. Mathew John, JJ. For the Appellant: Shri Rajaram Raman, Advocate For the Respondent: Shri K.S.V.V. Prasad, JC (AR) ORDER Per P.K. Das; The applicant is engaged in the business of financial activity of managing the assets of the various schemes of M/s. Sundaram BNP Paribas Mutual Fund (in short, SMF) and registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts were shown as expenditure in the profit and loss account which are a part of their cost and service tax cannot be levied. It is further contended that the Commissioner has erroneously proceeded that these amounts were recovered or reimbursed by the mutual fund company. He emphasizes the fact that the applicant has taken CENVAT credit only in respect of that part of advertisement expenses which was incurred by them and not reimbursed by SMF. His argument is that this is an expenditure incurred by the applicant so that investment in the mutual funds grow and consequential benefit is derived by applicant also. It is submitted that the credit was utilized in paying tax on output service as provided under the CENVAT Credit Rules. There is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2(l) of CENVAT Credit Rules, 2004 defines input service means any service used by a provider of taxable service for providing an output service. The main condition of the input service is that it has to be used for providing an output service. In the present case, the output service of the applicant is to provide financial advice to mutual fund to invest the funds. The obligation of the Asset Management Company is to take all reasonable steps and exercise due diligence to ensure the investment of funds is not contrary to SEBI Regulation and the trust deeds. The contention of the applicant is that the advertisement expenses were incurred by them to promote their business. In this context, it was referred to the SEBI Regulation to charge in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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