2026 (1) TMI 1516

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cellation charges. Appellant is providing Management of Business Consultancy Service, Advertisement Agency and various other services. During audit, it is alleged that the appellant availed ineligible cenvat credit on various inputs which are not used in the provision of output services for the period from July 2012 to September 2013 and also alleged that they failed to discharge service tax liability against consideration received as 'cancellation charges to tolerate an act/situation'. Accordingly, show-cause notice was issued and as per the Order-in-Original dated 29.6.2018 confirmed the demand and imposed penalty under various provisions of law. Aggrieved by said order, an appeal was filed before the Commissioner (A) and the Commissioner....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....) wherein it was held that the exclusions incorporated in April 2011 are intended to disallow those which are patently not for use in rendering 'output service". This issue was contested from the stage of reply to the notice that both the above services were used for business delegates and not used for "personal consumption of any employee". However as per the impugned order, cenvat credit denied merely on the findings that these input services were falling under exclusion clause (C) in rule 2(1). This is not tenable since the burden of proof is on the Revenue to establish that these input services were used for "personal consumption of employee" which is not discharged and hence, the exclusion clause in Rule 2(1) is not attracted. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oth sides. As regarding cenvat credit availed inputs services such as club membership fee, catering service and cab services, this issue is no longer res integra and is squarely covered by the decision of CCE vs. Sony Pictures (supra). While considering the issue, Tribunal in the mater of Sony Pictures Networks India Pvt. Ltd. vs. CST, Mumbai: (2024) 20 Centax 472 (Tri.-Bom.) observed that: "12. On the three services that were held to be ineligible for availment, it is the submission of Learned Counsel that Rs. 11,56,322 pertains to corporate membership fee paid for various associations which are not personal in nature. It is also submitted that the availment of credit of Rs. 4,00,072 as recipient of 'outdoor catering service&#....