Cenvat credit on conference charges qualifies as input service where the expenditure has nexus with business and sales promotion.

Conference charges used in relation to business activity and sales promotion were treated as input service under Rule 2(l) of the Cenvat Credit Rules, 2004, because the expenditure had the requisite nexus with the assessee's business. The Tribunal noted that the same Bench had allowed the benefit on identical facts earlier, and therefore the denial of Cenvat credit was unsustainable. The impugned order was set aside and credit was allowed in favour of the assessee.

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Issues: Whether cenvat credit on conference charges used in relation to business and sales promotion activities qualified as input service under Rule 2(l) of the Cenvat Credit Rules, 2004.

Analysis: The disputed expenditure was found to relate to the assessee's business activity and sales promotion. Such services fell within the definition of input service under Rule 2(l). The Tribunal also noted that on identical facts the benefit had already been allowed in an earlier decision of the same Bench.

Conclusion: The denial of cenvat credit was held to be unsustainable and the assessee was held entitled to the credit.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Services used in relation to business and sales promotion qualify as input services for cenvat credit purposes where they bear the requisite nexus with the assessee's business activity.

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