Video shoot of company manufacturing facility - ST paid by Event Management Company is an Input Service
THE applicant set up a new plant for manufacturing ‘Catalysts'.
They were of the opinion that for promoting their company and its products, they needed a catalyst. So, they availed the services of an Event Management Company to video shoot their manufacturing facility viz. the machinery and equipments, their QC laboratory, their production and dispatch system. In short, a walk-through of their factory sprinkled with a few words from their company management. Quite likely, they also uploaded this video shoot on their company website!
Anyways, service tax paid by the Event Management Agency of Rs.3.36 lakhs was availed as "Input Service Credit" by the applicant but this was objected to by the department leading to issuance of a SCN and confirmation of the same with an equivalent penalty.
Since the Commissioner(A) rejected their appeal, the applicant is before the CESTAT and submits that the services availed were used for promoting the business of their company and hence they are entitled for CENVAT credit more so as in the case of Hindustan Coca Cola Beverages Pvt. Ltd. (2009-TIOL-2304-CESTAT-DEL) involving similar facts and circumstances, unconditional stay was granted.
Holding that the applicant had made out a prima facie case in favour, the Bench waived pre-deposit and granted stay.