2018 (7) TMI 1012 – CESTAT NEW DELHI – TMI – CENVAT Credit – input service – advertisement in print media – denial of credit on the ground that advertisement in print media service does not carry any service tax liability – Held that:- The definition of input service under Rule 2(l) of the CCR, 2004 provides for credit on any service used for providing the output service. In addition, in the inclusive part of such definition, various activities have been included in which also the service tax is available as input credit.
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The inclusive portion specifically mentions advertising services. Consequently there is no doubt that the activity carried out through the advertising agencies can be considered has input service in Rule 2(l) – credit allowed – appeal allowed – decided in favor of appellant. – Appeal No. ST/51467/2018-ST(SM) – Final Order No: 52488/2018 – Dated:- 11-7-2018 – Hon ble Mr. V. Padmanabhan, Member (Technical) Sh. Sanjiv Agarwal, Adv. for the appellant Sh. P. R. Gup
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by them to the appellant, they included service tax on their commission in addition to the amounts paid to print media for publishing of advertisement. 4. He submitted that such service tax has been paid under the category of Advertising Services which are allowable as Cenvat Credit on input services as per the definition of Rule,2(l) of the CCR, 2004. Advertising Services are specifically mentioned the inclusive portion of the definition of Rule 2(l). He also submitted that it is not open to the department to dispute the classification of input service at the hand of the receiver of such services. Finally he submitted that the appellant was entitled to the Cenvat Credit. 5. On behalf of Revenue, we heard Shri P.R. Gupta ld. DR. He justified the impugned order and submitted that no service tax is payable on the payment to print media since the service tax is exempted. He submitted the service tax charged by the advertising agencies was not for any service rendered to the appellant, but
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ng as well as getting them published in print media. The service tax charged by such advertising agencies appear to be for service of the Advertisement Agency rendered to the appellant. 9. The definition of input service under Rule 2(l) of the CCR, 2004 provides for credit on any service used for providing the output service. In addition, in the inclusive part of such definition, various activities have been included in which also the service tax is available as input credit. The inclusive portion specifically mentions advertising services. Consequently there is no doubt that the activity carried out through the advertising agencies can be considered has input service in Rule 2(l). 10. In view of the above discussions, the appellant will be entitled to the Cenvat Credit of service tax paid on Advertising Services as input service. 11. In the result, the impugned order is set aside and appeal is allowed. ( Dictated in open court ) – Case laws – Decisions – Judgements – Orders – Tax Ma
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