Appellate Tribunal allows CENVAT credit on consignment agent commission with sales promotion role.

Vishal Pipes Ltd. Versus Commissioner of Central Excise, Noida

Vishal Pipes Ltd. Versus Commissioner of Central Excise, Noida - [2012] 36 STT 326 (NEW DELHI - CESTAT), 2015 (39) S.T.R. 864 (Tri. - Del.) The Appellate Tribunal CESTAT, New Delhi ruled that commission paid to a consignment agent, subject to service tax, allows the appellant to claim cenvat credit. The tribunal emphasized that if the consignment agent's role contributes to sales promotion, cenvat credit for service tax paid is permissible. The tribunal also noted that evidence of the goods' movement and the relevance of the service are crucial for such claims. The appeal was allowed, and the pre-deposit requirement was waived.