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TMI Blog2024 (5) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax on hotel charges/event held at hotel are inadmissible on the grounds that the said services do not qualify as input services as the service can be termed as input service only if it passes the test of being integrally connected with the manufacture of final product or a service mentioned in the inclusive portion of the definition of input service. 6.10. I find that the crucial requirement for availing CENVAT credit is that the inputs/input services on which the credit is sought to be availed should be received by the manufacturer of final product or by the provider of output services and should be used in or in relation to the manufacture of final products or for providing output service. 6.11. Further, Rule 9(5) of the CENVAT cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit paid on service tax on hotel charges/recreational activity at hotel/event held at hotel which are not input services and GTA Services which was not admissible to them. 2.3 A show cause notice dated 04.10.2018 was issued to the appellant seeking to deny the said credit along with demand for recovery of interest and for imposition of penalty on the appellant. 2.4 The show cause notice was adjudicated by the Assistant Commissioner disallowing the credit and by denying the credit ordering for recovery of interest and imposition of equal penalty. 2.5 The appellant filed the appeal before the First Appellate Authority which has been partly allowed in respect of GTA services by remanding the matter back to the Original Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice for providing an output service, or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the newly set up manufacturing unit where the management team travel to the factory premises and it also involved advertisement, designing, promotional video and pandal services wherein not only the employees of the company but its customers also attended and this service has also been held to be Input Service in the appellant's own case by the decision of the CESTAT, Chandigarh and various other decisions relied upon by the appellant cited supra. Further, as far as Management, Maintenance and Repair Service is concerned, this pertains to the management, maintenance and repair of DG sets which is required for generation of electricity for carrying out the manufacturing activity and once the hiring of DG sets has been allowed by the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oor Catering Service." 4.5 In the case of Axix Bank Ltd. [2019 (369) E.L.T. 583 (Bom.)], Hon'ble Bombay High Court has observed as follows: "6. Re Question (c) :- (i) The Respondent denied the CENVAT Credit of service tax paid to Event Management Services. This on the ground that the organization of various events cannot be considered as business promotion events. (ii) In appeal, the Tribunal by the impugned order found as a fact that the events are organized by the Respondent as a part of its business promotion activity. This, as it found that events are held specially to target high net worth customers. Thus, the service tax paid for obtaining Event Management Services would be an input services under Rule 2(1) of the Cenvat Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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