Cenvat credit on Event management service, outdoor catering service, tour operator and manpower recruitment service is allowed.

PJ/Case Laws/2010-11/1173

Case: - Hindustan Coca Cola Beverages Pvt. Ltd. V/s C.C.E., MEERUT-II

Citation: - 2011 (22) S.T.R. 508 (Tri.- Del.)

Issue:- Cenvat credit on Event management service, outdoor catering service, tour operator and manpower recruitment service is allowed.

Brief Facts:- Appellant availed Cenvat Credit on the Event Management services, outdoor catering service, earth work in the premises which involves leveling of the ground, cleaning of Effluent Treatment Plant etc, rent of bus for staff and manpower supply. Department had also sought denial of part of credit on the ground that invoices did not show the category of service. The Adjudicating Authority allowed the credit. In review, the Commissioner (Appeal) set aside the Adjudication order and confirmed the demand of amount equal to cenvat credit taken on the afore-said services.

Hence, appellant is before the Tribunal. Application for stay and waiver of pre-deposit is filed.

Appellant’s Contention: - Regarding department’s objection of non mentioning of nature of service used, on the invoices, it was submitted that this contention of department is factually incorrect, as all these invoices are of manpower suppliers, on which service tax had been paid and this is clear from the invoices themselves.

With regard to denial of credit on event management service it was submitted that it was used in connection of sales promotion. And the ground taken that these services were not used within the factory premises is incorrect as there is no such provision in Cenvat Credit Rules, 2004.

With regard to earth work it was submitted that earth work involved cleaning of Effluent Treatment plants, leveling of ground within the factory premises etc. and on this, the service tax had been paid under heading manpower supply, that this service is covered by the definition of the ‘input services’. Hence case for waiver of pre-deposit is made out.

Reasoning of Judgment: - The Tribunal held that the event management service has been availed in connection with sales promotion and being linked with sales promotion activity. It is, prima facie, covered by the definition of the “input service” in Rule 2 (l) of CCR, 2004. The services pertaining to earth work, in respect of which the credit was taken is actually manpower supply, which is prima facie covered under the definition of input service as this service has been used for cleaning of the Effluent Treatment Plant leveling of the ground and other cleaning operations in the factory. It was further held that from the invoices it appeared that these services are for supply of manpower and prima facie included in the definition of “input service”.

With regard to rent of bus for staff, the Tribunal agreed with appellant’s contention that it was tour operator service which has to be treated as input service as this service was used by the appellant for bringing the staff to the factory and back and also for other purposes in connection with their business.

Hence, it was held that appellant have a case and pre-deposit was waived and stay granted.

Decision:- Stay petitions allowed.

Comments

PJ/Case Laws/2010-11/1173

Post a Comment

Query