Case Law Details
Gulf Oil Corporation Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT find that the cenvat credit was denied to appellant on the ground that service being classifiable under Sponsorship Service, the appellant was supposed to discharge the service tax under GR-7 Challan. We find that the service provider M/s. K.P.H. Dream Cricket Pvt. Ltd. has classified the service under Business Auxiliary Service, in such case it is the service provider who is suppose to pay the service tax and the appellant can take the cenvat credit only on the basis of invoice issued by the service provider. The entire basis of the department’s case is dispute on the classification made by the service provider M/s. K.P.H. Dream Cricket Pvt. Ltd. We find that M/s. K.P.H. Dream Cricket Pvt. Ltd. has classified the service under Business Auxiliary Service and discharged the service tax and issued the invoice. Firstly, the classification of service cannot be disputed at the recipient end secondly, the classification of service maintained by the service provider M/s. K.P.H. Dream Cricket Pvt. Ltd. has been considered in judgment of COCA COLA INDIA PVT. LTD. reported at 2015 (38) STR 497.
From the above judgment, it can be seen that the only difference is that in the present case the cenvat credit was denied on the same ground on which the service tax was demanded in the above case. The dispute was same that the service falls under Sponsorship Service however, the tribunal in the case of COCA COLA INDIA PVT. LTD. (supra) held that at the recipient’s end the classification cannot be changed. Following the said judgment in the present case, we are of the considered view that since the classification of service cannot be challenged at the recipient’s end, the cenvat credit availed by them cannot be disputed.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The brief facts of the case are that during the course of audit conducted by the Central Excise Department, it was noticed by the audit party that the appellant has availed credit of Rs.1905500/- on the invoice issued by M/s. K.P.H. Dream Cricket Pvt. Ltd. (KPH) for promotion of the product of the appellant such as logo, trademark, products manufactured by the appellant. The service provider M/s. KPH has discharged the service tax and issued the invoice.
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