2019 (7) TMI 1348

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....hotel expenses and chairs/furniture used in their office premises. 2. The brief facts are that the appellant in the channel partner/distributor of SAP (accounting) software, popularly known as ERP software. The software has been developed by SAP India Pvt. Ltd. The price of software for one business organization is approximately rupees one crore and above. The cost of licence to use + the cost for implementation, which involves involvement of the appellant and their staff who are mainly software engineers to visit the premises of the client for several days for successful implementation of the software. For such business purposes, the appellant's staff/engineers are required to travel to the different cities or places where the client is....

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....inciple basis. Thus, the said activity being wholly related to the taxable services rendered by the appellant, by way of sale and service of software, is an allowable input service. 5. So far the guest house/hotel expenses are concerned, the same has been incurred in the course of travel by the personnel/ staff of the appellant. Such travel is essential for implementation of the software at the buyer's premises and also for trouble shooting and after sale services etc. Further, the Commissioner (Appeals) have erred in holding the same to be of the nature of personal consumption, which is totally wrong. Accordingly, this service is received for rendering taxable output service. 6. So far the Cenvat credit on chairs/modular furniture is....