2011 (7) TMI 299

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....l excise duty on transaction value. The Revenue entertained a view that the cenvat credit availed by them of the service tax paid and commission paid towards services received from selling agents during the period from December 2008 to 09.09.2009 cannot be considered as input service since the service received has no nexus with manufacturer and clearance of final product from the place of removal and services beyond the stage of manufacturer and clearance of goods from the place of removal.   3. Learned advocate on behalf of the appellants submitted that the issue is settled now in favour of the appellants in view of the decisions of the Hon'ble High Court of Mumbai in the case of Coca Cola India Pvt. Ltd. reported in 2009 (242) ELT....

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.... in the case of CCE Mumbai Vs. GTC Industries Ltd. reported in 2008 (12) STR 468 (Tri.-LB) and Chemplast Sanmar Ltd. Vs. CCE Salem reported in 2010 (250) ELT 46 (Tri.-Chennai).   5. I have considered the submissions made by both the sides. In the impugned order learned Commissioner has taken a view that service tax credit for commission agent services is not admissible because it has been given to the dealers and such commission has been claimed as a discount. However, I find that even in the show cause notice issued by the department, this fact has not been stated. According to the show cause notice the demand was made on the ground that the services received from selling agents did not have any nexus with the manufacture and clear....

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....considered as a ground for confirmation of the demand.   6. As regards the ground taken by the Revenue in the show cause notice, the decisions of the Hon'ble High Court of Mumbai in the case of Coca Cola India Pvt. Ltd. and Ultratech Cement Pvt. Ltd. are squarely applicable. In the case of Ultratech Cement Pvt. Ltd. in para 28 & 29 Hon'ble High Court discussed the scope of inclusive part of the definition of input service and the expression activities in relation to business. The Hon'ble High Court also considered the decision of the Apex Court in the case of M/s. Maruti Suzuki Ltd. wherein cenvat credit was held to be admissible only when there was a nexus with the manufacturing activity. The Hon'ble High Court took a view that the....