2010 (7) TMI 330

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....sp;    Shri S.K. Bhaskar, DR, for the Appellant. Shri Ravi Chopra, Advocate, for the Respondent. [Order (Oral)]. - This is an appeal by the department against the order of the Commissioner (Appeals) No. 119/CE/APPL/JAL/2008 dated 27-3-2008. 2. Heard both sides. 3. The respondents are a manufacturer of hand tools and part of the goods manufactured by them are....

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....cause notice dated 26-10-06 alleging that the services rendered by overseas commission agents cannot be treated as inputs services and seeking to deny the credit and proposing to impose penalties. Original authority disallowed the credit and ordered recovery of Rs. 4,20,592/- and imposed penalty of equal amount under Rule 15 of the Cenvat Credit Rules, 2004. Commissioner (Appeals) has set aside th....

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....nition of 'inputs services', he submits that the term 'inputs services' includes to any services used in relation to "sales promotion". The activities of overseas commission agents which includes canvassing and procuring orders are clearly part of sales promotion activities and, therefore, the same is rightly to be treated as inputs services. He also submits that as recipient of input services, th....

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....so aims at sales of goods which are to be manufactured and cleared in future. Any advertisement given has a long term impact and cannot be treated as post clearance activities and therefore, sales promotion has been specifically included in the definition of input services. As regards the other contention that the documents on which the respondent has taken the credit is not the prescribed documen....