Sales promotion commission qualifies as an input service, allowing Cenvat credit where agents promote sales of dutiable goods.

Cenvat credit is admissible on sales commission paid to agents where their services promote the sale of dutiable goods. Sales promotion within the definition of input service includes commission-based services for selling dutiable goods. A Board clarification permitting the credit was reinforced by a later Explanation to Rule 2(l), described as declaratory and retrospectively effective to resolve conflicting judicial views. The stated effect is that commission paid for sales-promotion services qualifies for Cenvat credit.

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Issues: Whether Cenvat credit is admissible on commission paid to agents for sales promotion through sale of dutiable goods on commission basis.

Analysis: Sales promotion includes services rendered for sale of dutiable goods on a commission basis within the definition of input service. The Board clarification allowing such credit was confirmed by the subsequently inserted Explanation to Rule 2(l), which was treated as declaratory and retrospectively effective for resolving divergent judicial views.

Conclusion: Cenvat credit on sales commission paid to agents for sales promotion is admissible; the issue is decided in favour of the assessee.

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