Input service credit for sales commission was allowable where agent commission had direct nexus with business activity.

Commission paid to agents for selling finished goods was treated as an input service with direct nexus to the assessee's business activity under Rule 2(l) of the Cenvat Credit Rules, 2004. On that basis, the commission-related service was held to fall within the eligible credit framework, and input service credit was allowable. The denial of credit was therefore unsustainable.

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Issues: Whether input service credit on commission paid to agents for selling finished goods was admissible under Rule 2(l) of the Cenvat Credit Rules, 2004.

Analysis: The claimed service related to commission paid for sale of the final product and was treated as having direct nexus with the assessee's business activity. Following the settled legal position, such input service was held to fall within the eligible credit framework.

Conclusion: Input service credit was allowable to the assessee, and the denial of credit was unsustainable.

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