The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal recently ruled that Cenvat Credit not available for sponsorship service. Judicial Member Ashok Jindal was considering the appeal between M/s Godawari Power & Ispat Ltd versus CCE, Raipur.
The Assessee, in the instant case, has filed an appeal pointing out a grievance that Cenvat credit on various services has been denied viz. air travel, architect, club membership, event management and sponsorship to the appellant on the premise that these services are input services as per Rule 2(l) of the Cenvat credit Rules 2004.
Regarding the allowability of credit in respect of the sponsorship services, the bench noted that said service availed by the assessee for sponsorship of the various events organized by the various social organization.
The Tribunal bench, while rejecting the plea of the assessee, held that providing sponsorship to various social events not amounted to the manufacturing activity of the appellant. Accordingly, for the aforementioned service provided by Assessee is not entitled to avail in terms Rule 2(l) of Cenvat Credit Rules 2004.
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