TaxTMI 
TaxTMI 
2009 (10) TMI 394
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.... tax paid on "Event Management service" provided to the appellants in connection with celebration of expansion of their Chanderia plant. Original authority disallowed the credit and confirmed the demand of Cenvat credit of Rs.5,58,961/- and imposed penalty of Rs.10,000/- under Rule 15(3) of the Cenvat Credit Rules, 2004 along with interest. Commissioner (Appeals) upheld adjudication order. 2. The learned Advocate on behalf of the appellants submits that Event Management service was utilized by the appellant-comp relating to the business activity insofar as the celebration of expansion of their Chanderia plant which is covered within the definition of "input service" under Cenvat Credit Rules, 2004. He submits that the cost of Event Managem....
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....blish that celebration was done in connection with business. He further submits that any expenses incurred by the assessee cannot be activities relating to business unless it is established by the evidences that such activity is relating to business. It is his contention that the appellant in the present case failed to establish that celebration was held in connection with the business activity. He also submits that Section 37 of the income-tax Act, 1961 is different from the definition of input service under Rule 2(1) of Cenvat Credit Rules, 2004 and, therefore, case laws relied upon by the learned Advocate are not applicable herein. 4. After hearing both sides and on perusal of the records, I find that the appellant-company availed input....
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....e restricted to services specified therein." 5. Larger Bench of the Tribunal in the case of CTC Industries Ltd. Held that credit of tax on those taxable service would be allowed that go to form the part of the assessable value of which excise duty is charged. It is, precisely, contended by the learned Advocate that any expenses relating to the business activity form part of the assessable value would be eligible for, Cenvat credit. It is contended by the appellant that the Commissioner (Appeals) erroneously observed that celebration for expansion of Chanderia plant is mere entertainment. On the other hand, learned SDR submits that the assessee has to establish that the service was rendered in connection with the business. In this connectio....
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....hure at the time of its golden jubilee was also allowed as revenue expenditure. (c) In the case of Aluminium Industries Ltd. (supra), the Hon'ble Kerala High Court held that the expenditure incurred by the assessee was revenue expenditure. In this case, expenditure was incurred in connection with inauguration ceremony on commission of new project, the Chief Minister of Karala was invited. Press conferences were held and it bought out a newspaper supplement. 6. In the above High Court decisions, it is evident that the assessee produced evidences to establish that the expenditures were incurred for the purpose of business would include of advertisement for claiming benefit under In come-tax Act. Similarly, service tax is a tax on value addi....