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of <h1>Appellate Tribunal rules sales commission as input service tax in favor of appellant</h1> <h3>Triveni Engineering & Industries Limited Versus C.C.E. & S.T. - Meerut-I</h3> Triveni Engineering & Industries Limited Versus C.C.E. & S.T. - Meerut-I - TMI Issues:Whether sales commission paid to persons procuring sale orders is available as input service tax for the appellant-assessee.Analysis:The appeal before the Appellate Tribunal CESTAT, ALLAHABAD revolved around the eligibility of sales commission paid to individuals procuring sale orders as input service tax for the appellant. The show cause notice was issued based on the appellant taking Cenvat Credit on commission paid to sugar selling agents. The appellant argued that the issue had been settled by a Division Bench in Essar Steel India Limited vs. CCE & ST, where it was established that the commission paid to overseas marketing agents for sales promotion activities qualified as input services. This determination was supported by the explanation to Rule 2(l) CC Rules 2004, inserted by a notification in 2016, which clarified that sales promotion includes services involving the sale of dutiable goods on a commission basis. The Tribunal also referenced a circular from the Central Board of Excise dated 2011, stating that when an explanation is inserted in a rule, it is declaratory in nature and effective retrospectively. The Tribunal further cited a ruling from the Hon'ble Punjab & Haryana High Court and the Hon'ble Supreme Court, emphasizing that explanations are meant to clarify the meaning and intent of a rule or section, sometimes with retrospective effect.The Revenue, represented by the learned AR, relied on the impugned order, but the Tribunal, following the precedent set in Essar Steel India Limited, concluded that the issue was in favor of the appellant. Therefore, the appeal was allowed, and the impugned order was set aside. The appellant was deemed entitled to consequential benefits as a result of the Tribunal's decision. The judgment was dictated and pronounced in court by Anil Choudhary, the Judicial Member of the Tribunal.
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