Cenvat credit on commission to sales agents supports a prima facie stay of duty recovery at the interim stage.

Commission paid to agents engaged in selling final products was treated on a prima facie basis as falling within the input service definition under Rule 2(l), because the agents provided sales services for the manufacturer's electric motors and discharged service tax on that commission. On that interim view, the disputed Cenvat credit could not be rejected at the stay stage. The appellant therefore made out a prima facie case for waiver of pre-deposit and stay of recovery of the duty demand.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of duty demand arising from availment of Cenvat credit on commission paid to commission agents for sale of final products.

Analysis: The appellant manufactured electric motors and engaged commission agents for sale of its products. The commission agents received commission for sale services and discharged service tax on the same. On a prima facie view, the activities of the commission agents in selling the appellant's products were treated as covered by Rule 2(l), supporting the claim that the disputed credit could not be rejected at the interim stage.

Conclusion: The appellant established a prima facie case for waiver of pre-deposit and stay of recovery.

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