HINDUSTAN ZINC LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides and perused the record. The applicant filed this application for waiver of pre -deposit of duty of Rs. 5,58,961/ - and penalty of Rs. 10,000/ -. The learned Counsel submits that in this case credit was denied on service tax as to whether "Event Management Service" provided by M/s. Innuendo Communications, New Delhi to the appellant in connection '"celebration" of expansion of Chanderia plant could be considered as input service in terms of the Rule 2(1) of the Cenvat Credit Rules, 2004. He submits that the celebration is connected with the activities relating to the business, as provided in the inclusion clause of Rule 2(1) of Cenvat Credit Rules, 2004. He further submits that the applicant has already deposited Rs. 1 lac.

(2.) THE learned authorized representative (DR) reiterates the finding of the Commissioner (Appeals).

(3.) AFTER hearing both sides and on perusal of the record. I find that the Commissioner (Appeals) treated the activities of celebration as entertainment and therefore credit was denied. The learned Counsel drew attention of the bench to the finding of the adjudicating authority where it has been observed that event management service is to celebrate inauguration of the expansion of Chanderia plant. So, the issue is that whether the inauguration of expansion of the Chanderia plant will be treated as entertainment or "activities relating to business also", which will be decided at the time of final hearing. Hence, the applicant failed to make out a prima -facie case for waiver of pre -deposit of entire amount of duty and penalty. Accordingly, the applicant is directed to pre -deposit further a sum of Rs. 1,00,000/ - within six weeks. Upon deposit of the same, pre -deposit of balance amount of duty and penalty is waived till the disposal of the appeal. Matter to come up for reporting compliance on 27 -11 -2007.