Input service coverage for foreign commission agents securing export orders treated as sale promotion and business-related activity.

Commission agent services received abroad for securing export orders were treated as input service for Cenvat credit purposes because Rule 2(l) of the Cenvat Credit Rules, 2004 includes advertisement or sale promotion services and activities relating to business. Services of foreign commission agents engaged to procure export orders were viewed as falling within sale promotion and, in any event, within business-related activities. On that basis, the service was held prima facie to be covered by the definition of input service, no infirmity was found in the order-in-appeal, and the stay application was dismissed.

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Issues: Whether commission agent services received abroad for securing export orders constitute input service for Cenvat credit purposes.

Analysis: The definition of input service under Rule 2(l) of the Cenvat Credit Rules, 2004 was taken to include advertisement or sale promotion services as well as activities relating to business. The service received from commission agents appointed abroad was for securing export orders, which was treated as falling within sale promotion and, in any event, within activities relating to business.

Conclusion: The service was held, prima facie, to be covered by the definition of input service, and no infirmity was found in the order-in-appeal; the stay application was dismissed.

Ratio Decidendi: Services of commission agents engaged to secure export orders can fall within input service as sale promotion or as activities relating to business.

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