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Pam Pharmaceuticals & Allied Machinery Co. P. Ltd. Versus Commissioner of Central Excise, Mumbai V

2016 (3) TMI 229 - CESTAT MUMBAI

Cenvat Credit denied of service tax paid on club membership of Association - membership of the club does not fall within the definition of input service, and the same is not related to manufacturing activities - Held that:- The membership of the business club like the Entrepreneur organisations is indirectly related to the promotion of the business of the appellant. The expenses incurred on membership of the club are forming part of the assessable value and as per the judgment in the case of Coc .....

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legally take Cenvat Credit of the expenses incurred on the membership of the club. - Decided in favour of assessee - Appeal No. E/1262/11- Mum - Final Order No. A/85555/2016-WZB/SMB - Dated:- 4-2-2016 - MR. S.S. GARG, MEMBER (JUDICIAL) For the Petitioner : Shri H.G. Dharmadhikari, Advocate For the Respondent : Shri Ashutosh Nath, AC (AR) ORDER This present appeal is directed against Order-in-Appeal No. SB/55/M-V/2011 dated 25.04.2011 passed by the Commissioner of Central Excise (Appeals), Mumba .....

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d by the appellant on two grounds i.e. (i) credit has been availed on the documents which does not disclose the service tax registration number of service provider and type of service as required under Rule 4A of service tax documents; and (ii) the service of the club is not an input service in or in relation to manufacture of final product as per the definition of input service under Rule 2(l)(ii) of CENVAT Credit Rules, 2004. The appellant filed the reply to the show-cause notice. After hear .....

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) is bad in law and is liable to be set aside on the ground that the membership of the business club is directly related to the business of the company and therefore fall in the definition of input service. He further submitted that any business activity prior to or during the course of post manufacture of final product has nexus with the business and such services is in relation to those activities are input services within the terms of Rule 2(l) of CENVAT Credit Rules, 2004. He further submi .....

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or canvassing the business and therefore the membership of such club is directly connected with the business of appellant. He further submitted that club membership expenses are forming part of the assessable value since they are being debited to profit and loss account i.e. the said activity is construed to be a input service in view of the settled law by the decision of the Hon'ble High Court of Bombay in the case of Coca Cola P. Ltd. 2009 (15) STR 657. 4. On the other hand, ld. AR reitera .....

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anufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal. 6. He further submitted that the club and association service is used in or in relation to business activity. In support of his submission, he relied upon the following judgment:- 1) CCE vs. Ultratech Cement Ltd. 2010 (20) STR 577 (Bom) 2) Willis Processing Services (I) P. Ltd. vs. CST 2015 (38) STR 169 3) Mangalam Cement Ltd. 2015 (38) S .....

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turing of final product; whereas the contention of the appellant is that the membership of such an organisation is essential for the purpose of promoting their final product and to get the knowledge with respect to the availability of inputs from right source across the globe and also to facilitate the meetings of entrepreneurs for exchange of their knowledge and information. The present organisation is not an entertainment club and purely a business club. The ld. Counsel for the appellant also .....

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