2017 (1) TMI 1176

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....nd after due process of law the original authority disallowed the entire credit and confirmed the demand along with interest besides imposing equal amount of penalty. In appeal the Commissioner (Appeals) upheld the same. Hence the appellant is now before the Tribunal. 3. On behalf of the appellant Ld. Counsel Sh. M. Rajendran submitted that the input services under dispute are membership fees paid to Young Entrepreneurs Organization, Convention Services, Risk Advisory Services and also availment of credit on full amount of service tax paid on C & F services. The Ld. Counsel submitted that though the issue of repair and maintenance and insurance of motor vehicles was also subject matter of dispute before the first appellate authority the ....

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....artment has denied the credit on this service alleging that the appellant ought to have availed only proportionate credit. He prayed that the credit on input services may be allowed. 5. Against this the Ld. AR Shi Arun Kumar reiterated the findings in the impugned order. He submitted that the membership in Young Entrepreneurs Organization cannot be considered to be having nexus with the manufacturing activity of the appellant and that the organization is only a club and that credit has been therefore rightly denied. He submitted that the convention service as well as risk advisory service also do not have nexus with the business of manufacturing and therefore has been rightly disallowed. The Ld. AR submitted that in the case of services ....

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....sory services is allowed. 7. The next issue for consideration is the eligibility of the credit on the full amount of service tax paid to C & F agents. The Cd. Counsel for appellant has produced before me invoices issued by the C & F agents. On perusal, it is seen that after issuance of the invoices the appellants have been given deduction in the consideration paid to the C & F agents thus reducing the value of the service received. Though deduction was given in the consideration (value of services), the service provider has not deducted the service tax relating to such deductions given. The appellant has therefore been able to take credit on the entire service tax. When deduction is given in the value of services definitely appropriate d....