Tribunal allows Cenvat credit for membership fees and subscriptions, reducing denial in catering services case.

The Tribunal allowed Cenvat credit for membership and subscriptions to business associations and periodicals, considering them admissible input services related to the business activity of the appellant. The appellant's contention regarding the amount demanded for outdoor catering services led to a revised quantification sheet, resulting in a reduced denial of credit. Previous judgments supported the allowance of Cenvat credit on similar services, leading to the disposal of the appeal in favor of the appellant.

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Issues:
Admissibility of Cenvat Credit for out door catering services and membership/subscriptions of business associations and periodicals.

Analysis:
The case involved an appeal against an Order-in-Appeal where the Commissioner (Appeals) upheld the denial of Cenvat credit on certain services availed by the appellant. The appellant, engaged in manufacturing excisable goods, was found availing Cenvat credit on services like membership of business associates and out door catering. The show cause notice proposed denying Cenvat credit on these services, leading to a demand of Rs. 3,11,718, along with interest and penalties. The Commissioner (Appeals) affirmed the original order, prompting the appellant to appeal further.

During the hearing, no representation was made on behalf of the appellant, and the Assistant Commissioner representing the Revenue reiterated the findings of the impugned order. The issue at hand was the admissibility of Cenvat Credit for out door catering services and membership/subscriptions of business associations and periodicals. The appellant contended that the amount demanded for out door catering services was incorrect and submitted a revised quantification sheet, suggesting a reduced denial of credit. The Tribunal directed the adjudicating authority to verify this re-quantification. Regarding membership and subscriptions, the Tribunal noted that these expenses were directly related to the business activity of the appellant, and thus, Cenvat credit was deemed admissible.

The Tribunal referred to previous judgments on similar issues, such as BAL PHARMA LTD. and BACH ELECTRIC LTD., where Cenvat credit was allowed on membership fees, professional charges, and other services. Membership of business associations like CII, Young President Pune Chapter, IEEMA, Economic Research India Ltd., MCCIA, and subscriptions to business periodicals were considered admissible input services. The Tribunal concluded that the membership and subscriptions of business associations and periodicals were admissible input services, and credit was allowed. The appeal was disposed of accordingly.

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