CENVAT credit eligible even if expenses are reimbursed by Parent company

Brief Facts of the case The appellant is engaged in the manufacture of motorcycle and procures the service of advertising agency for the purpose of advertising their final product. They pay the value of the services to the advertising agency along with the amount of Service Tax leviable thereon. Consequently, they are entitled to the Cenvat credit of Service Tax so paid by them on the advertising cost. As the appellant is a 100% subsidiary of their parent company located in Japan, the part of the advertising expenditure incurred by them are being received by them from their parent company. The...