Nature of service is irrelevant for rule 5 of CENVAT Credit Rules, 2004

Rolex Watch Company Private Ltd Vs Commissioner of CGST & Service Tax (CESTAT Mumbai) On perusal of the contract, it is seen that there are two obligations that devolve on the appellant, viz, promotion and marketing of Rolex watches in India and undertaking repairs/replacement during the warranty period for which neither the customer nor the overseas entity are charged. That the ‘consideration’ in the contract, having nought to do with actual turnover in India or the nature and extent of repairs, is for the contracted activity is plausible; in any case, the manner of computation does n...