In a major relief to M/s Trinetra Cement Limited, the New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed the cenvat credit on the event management services and mandap keeper services.
The counsel for the appellant submits that the Event Management services were availed in relation to events such as annual award and other functions organized for its dealers based on their sales performance. Such awards, incentivize and improve sales performance.
The Commissioner rejected the claim on the ground that the invoices do not mention any event and this was because the event manager does not give the details of the event and therefore, the claim of the appellant cannot be rejected on this ground.
In the matter of mandap keeper service the counsel for the appellant submitted that the Cenvat credit on mandap keeper services was availed for the hotels and restaurant services for the functions and programmes held for dealers and customers and hence they fall under the definition of sales promotion and market research‘. Therefore, credit should be allowed.
The Bench of observed that “When one hires a service provider, he may not always indicate in detail the programme which is being organized. Instead, he indicates the services which he provided and the name of the client. In our considered view, the services rendered towards the annual awards or other programmes for the dealers have a direct nexus to sales promotion and CENVAT credit is admissible on such services.”
The Bench further noted that “If the invoice was issued to the appellant and it was for food for 1100 persons and the appellant claims that it was for their business function, there is no reason to doubt and say that it was for a private function in the absence of any evidence that the invoice meant for a personal function was shown as an invoice for official meeting and billed to the appellant. Therefore, hold that the appellant was entitled to Cenvat credit of this amount.”
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