M/S.Ajmer Auto Agencies Pvt.Ltd vs Cce, Ajmer
- Case No.Appeal No. ST/51032/2015
Ratio decidendi
The rule this decision rests on
Input services for decor and entertainment shows organised by an authorised dealer to celebrate its anniversary, where the event promotes its authorised service station's after-sales servicing business, are eligible for Cenvat credit; the fact that the dealer is also engaged in selling vehicles does not, by itself, mean that such promotional services are for the trading activity alone and outside the scope of input services.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of OIA No.38(SLM)ST/JPR-II/2014 dated 6.1.2015 passed by Commissioner of CCE(Appeals), Jaipur)
Date of Hearing: 19/06/2015
Date of Order:02.07.2015
For approval & Signature:
Honble Smt.Sulekha Beevi C.S., Member (Judicial)
1. Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? No 3. Whether their Lordships wish to see the fair copy of the order? seen 4. Whether order is to be circulated to the Department Authorities? Yes
M/s.Ajmer Auto Agencies Pvt.Ltd. Appellant
Vs.
CCE, Ajmer Respondent
Appearance:
Present for the Appellant: Shri A.K.Batra, Advocate
Present for the Respondent: Shri Ranjan Khanna, AR
Coram: Honble Smt.Sulekha Beevi C.S., Member (Judicial)
Final Order No.52074/2015
Per: Sulekha Beevi C.S.
This appeal is filed challenging the disallowance of Cenvat credit on input services.
2. The appellants are primarily engaged in the activity of selling vehicles manufactured by Maruti Suzuki India Ltd and also undertakes the activity of providing services of such vehicles through workshops located at Ajmer,Kekri, and Nasirabad in Rajasthan. The dispute in this appeal is with regard to the services provided from the workshop located at Ajmer. The show cause notice dated 30/03/2011 was issued to the appellants alleging that the appellants had wrongly availed Cenvat credit of Rs.3,51,393/ on the services provided in relation to decor and entertainment shows. The show cause notice finalized in the order passed confirming the demand and imposing equal amount of penalty along with interest. Aggrieved the appellant preferred appeal before the Commissioner (Appeals) who upheld the same. Hence this appeal.
3. The main allegation is that the domain activity of appellants being sale of cars, the invoices issued for input services of decor and entertainment shows was for trading activity of the appellant and not for promotion of the Authorised service station conducted by the appellant.
4. Against this the contention of the appellants is that they have organized the Show to attract the customers for servicing of their vehicles and the said iniput services were for promotion of servicing of vehicles through their Authorised service station. The invoices and bills show that the show was organized for celebrating 25th anniversary of the appellants. The authorities below have reached a conclusion that the celebration of 25th anniversary is with regard to the appellants dealership of Maruti. That the input services of conduct of entertainment show/celebration is not confined to the promotion of servicing of vehicles through their Authorised service station.
5. It is not in dispute that the appellants are dealers of Maruti Suzuki India Ltd and that they are also having Authorised service station for the same. The sale of cars depends upon the after sales service and customer support offered by the dealer. Therefore the activity of service and maintenance of vehicles is of no less importance. At no stretch of imagination it can be said that any promotional activity by conduct of entertainment shows or otherwise would increase the selling business of the appellant alone and that it does not benefit the Authorised service station. The view taken by the authorities below, that the activity of servicing of vehicles is only an auxiliary activity which is attached with the sale of cars is highly untenable. Only because the appellant are engaged in the business of dealership of cars also it would be highly incorrect to hold that the entertainment shows/promotional shows conducted by the appellants was for promotion of sale of cars alone and not for promotion of servicing of Maruti cars at their Authorised service station. At any rate, the decor and entertainment show/event management services qualifies as input service under the wide definition applicable at the relevant period.
6. From the foregoing I hold that the appellants are entitled for the credit of Rs.3,51,393/.The impugned order is hereby set aside and the appeal is allowed with consequential reliefs if any to the appellant.
(pronounced in open court on 02.07.2015)
(Sulekha Beevi C.S.)
Member (Judicial)
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