Cenvat Credit on Hotel Bills

[Mathurthi RamKumar]

Dear All,

Greetings of the day. We are a kraft paper manufacturing unit and our CMD and Exe.Directors-Sales will visits clients (old and new )for business promotions purpose. I want to know can we avail s.tax input paid to hotels at the time of business tours?

Kindly clarify me.

Thanks is advance.

Regards

M.RamKumar

AI Summary

Cenvat credit on hotel bills may be denied unless business nexus and documentary proof substantiate travel purpose.
Cenvat credit on hotel accommodation for executive business travel may be claimed if a clear nexus to manufacturing and sales promotion is proved with supporting documents, but generic hotel bills lacking purpose risk disallowance; other views treat such accommodation as consumed by employees and therefore excluded under the input service definition, creating audit and compliance risk for claims.