Claim of cenvat credit on input services

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
NEW DELHI
PRINCIPAL BENCH COURT NO.IV

Service tax Appeal No. 52602 / 2019

[Arising out of Order-in-Appeal No. 668-CRM-ST/JDR/2019 dated
11.07.2019, passed by the Commissioner (Appeals) CGST, Jodhpur
(Rajasthan) ]
ALLEN CAREER INSTITUTE
CP-6, Indira Vihar
KOTA 324005
Rajasthan.
APPELLANT

Vs.

COMMISSIONER (APPEALS)
CENTRAL GOODS AND SERVICE TAX
G-105, New Industrial Area,
Opp Diesel Shed, Basni,
Jodhpur-302004 (Raj)
RESPONDENT

APPEARANCE:
Ms Neha Somani, Chartered Accountant for the Appellant
Shri P Juneja, Authorised Representative for the Department

CORAM:
HON’BLE MRS RACHNA GUPTA, MEMBER (JUDICIAL)
 DATE OF HEARING/DECISION: April 07, 2021

FINAL ORDER No. 51248 /2021

PER RACHNA GUPTA

The order of Commissioner (Appeals) bearing No. 668(CRM)ST/JDR/2019 dated 11.07.2019 has been assailed vide the impugned appeal. The facts, in brief, as are required for adjudication are as follows:

The appellants are engaged in providing commercial training and coaching services which is covered under taxable service defined under 65B(44) of Finance Act, 1994. Department observed that the appellant had availed Cenvat Credit on the invoices issued by M/s. Quick Advertising Company. The said company was engaged in booking and canvassing for advertisements for publishing on commission basis fixed by Indian News Paper Society for publishing the same in print media. The Company have paid service tax on commission received by them from print media. The appellant in turn is observed to have taken the input service credit on the strength of these invoices of the said advertising company and for utilising the same for discharging the Service Tax liability. The department, observing that the said service was the input service for printing media from whom the said agent received the commission and as such, the appellant could not have taken the cenvat credit thereof, issued Show cause notice dated 22.02.2018 proposing recovery of the credit availed by them along with interest at appropriate rate and proportionate penalties. Vide Order No. 50/ST/KOTA-H/2018 dated 31.08.2018, the Cenvat Credit of Rs. 33,43,082/- was disallowed to the appellant and the proposal of the Show cause notice was confirmed. The said order was assailed before Commissioner (Appeals) who vide the Order under challenge has dismissed the appeal. Being aggrieved, the appellant is before this Tribunal.

2. I have heard Ms Neha Somani, learned Chartered Accountant appearing for the Appellant and Shri P Juneja, learned Authorised Representative for the Department.

3. It is submitted on behalf of the appellant that service of advertising agency are eligible for cenvat credit as these have been used for and in relation to promotion of business of appellant only and not that of printing media. It is also mentioned that the appellant has correctly raised the invoices /documentation and in order to pass on the burden of service tax to the assessee, the agent on their invoices has shown the amount of commission separately and charged the service tax from the appellant. 

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