2018 (11) TMI 1197

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.... the service tax by the Vishnupuram unit, for which the appellant has availed credit. Show Cause Notice dated 29.01.2016 was issued to the appellants proposing to deny CENVAT Credit on the service tax paid on the grounds that the input service with regard to transportation of consignment had not been received by the appellant unit and that the input credit documents were in the name of the sister unit. The appellants vide their reply stated that there was no dispute as to the receipt of goods and payment of service tax towards the GTA service rendered in transportation of fly ash. After due process of law, the adjudicating authority vide Order-in-Original dated 17.01.2017 confirmed the demand in the Show Cause Notice. Subsequently, the appe....

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.... under : "10. On perusal of the above decisions, I am of the view, in the present case, credit cannot be denied merely because the Service Tax on advertisement charges was paid by the Unit-I for the advertisement of product of Unit-II, while both are under the umbrella of the same company. At any event, Unit-I could be registered as input service distributor under the Rules 2004. The Tribunal held that credit should not be denied for such procedural infraction when substantial part of the rule is complied. The another aspect of this case is that Unit-I, appellant herein, is eligible to avail the credit on Service Tax paid on advertisement charges. The reason for denial of the credit is that the contents of the advertisement is in respect o....

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....e final product. The manufacturer thereby can avail the credit of the Service Tax paid by him. Once the cost incurred by the service has to be added to the cost, and is so assessed, it is a recognition by Revenue of the advertisement services having a connection with the manufacture of the final product. This test will also apply in the case of sales promotion." 11. The inclusive part of definition of "input service" under Rule 2(l) of Cenvat Credit Rules, 2004, consists of "advertisement or sales promotion ...., activities relating to business". The Hon'ble Bombay High Court in the case of Manikgarh Cement (supra) as relied upon by the ld. A.R., held that Cenvat credit of input service is allowable only if nexus between relevant services....