TMI Blog2018 (5) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... iquor but of other products of the company, such as, soda - Since, the entire agreement with M/s United Spirits Limited is entered into with the appellant for promotion of IMFL, the advertisement services cannot be considered to be used in promotion and marketing of IMFL - such advertisement services do not come under the definition of input service within the definition of Rule 2 (l) - credit not allowed. Whether the disallowance of Cenvat credit can be sustained for the period covered by longer period of limitation under Section 73? - Held that: - Such advertisements are consciously made without showing liquor, circumventing the ban on advertisement for the IMFL products, but the appellant have asserted that such advertisements were fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. as permissible under the applicable laws and in accordance with proprietary rights of the company. The assessee will also conduct/or undertake independently such or such other promotional activities at their own cost, in consultation with the company, for the promotion of companies products. (c) Consideration for the above activity shall be paid as commission based on number of crates/cases of the liquor sold; wherein the commission amount is calculated after considering the value of advertisement expenses and all other expenses incurred by the assessee for performing the above activities under the contract. 2. Appellant is registered with the Service Tax Department for the provision of Business Auxiliary Services under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d DR for the Revenue. 5. Shri A.K. Batra, explained the grounds of appeal and his arguments are summarized as follows :- (i) the advertisement undertaken contains only the brand name and does not contain name or description of any goods (including liquor); (ii) promotional activities undertaken by appellant focuses on brand promotion of the company and not of any specified product or liquor as per the probation imposed under Indian laws; (iii) brand promotion directly helps in increasing the sales of the company of all the products uniformly irrespective of the fact that the brand is commonly used upon various products ; (iv) hence, expenses incurred by the appellant on advertisement is input services directly relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was guilty of suppression of facts and, hence, the Revenue was within its right to raise the demand for the extended period under Section 73 of the Act. 7. We have heard both sides and perused the record. 8. The crux of the dispute is whether advertisement services used by the appellant can be considered as input services for the provision of the output service of promotion and marketing of the liquor produced by M/s United Spirits Limited, the customer. It is an admitted fact that the advertisement expenditure was incurred for advertisements not for liquor but of other products of the company, such as, soda. We have perused a copy of the agreement between M/s United Spirits Limited and the appellant in which the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisement of soda etc. cannot be considered as an advertisement of the alcoholic beverages of the same company. In fact such an attempt is to be considered as subversion of the spirit of the law which prohibits advertisement of alcohol. Since, the entire agreement with M/s United Spirits Limited is entered into with the appellant for promotion of IMFL, the advertisement services cannot be considered to be used in promotion and marketing of IMFL. Consequently, we are of the view that such advertisement services do not come under the definition of input service within the definition of Rule 2 (l). 10. We have very carefully considered the decisions cited on behalf of the appellant. In the case of Coca Cola India Pvt. Ltd. (supra), the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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