2011 (7) TMI 980

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....and Services Tax Appellate Tribunal, New Delhi (for short "the Tribunal"). 2. The appellant has claimed that the following substantial question of law arises for consideration by this Court : "Whether the Hon'ble CESTAT was correct in holding that the respondent is entitled to avail the CENVAT credit on the services provided by Overseas Commission Agents (provided in relation to canvassing and procuring of orders) as input services despite the fact that the services of "overseas commission agents" are post removal services and do not fall under the ambit of the definition of "input service" given under Rule 2(l) of Cenvat Credit Rules, 2004, which defines "input services" as the services used in or in relation to the manufacture ....

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....ter that the same be treated as an intimation as required under sub-section (3) of Section 73 of the Finance Act, 1994 and that it had taken Cenvat Credit of the said service tax in its Cenvat account which would be utilized for payment of excise duty. 4. On scrutiny, it was observed that the respondent had wrongly availed the Cenvat Credit of service tax and thus, contravened the statutory provisions of Rule 2(l) read with Rules 3 and 4 of the Cenvat Credit Rules, 2004 (in short "the 2004 Rules"). It is how a show cause notice dated 26-10-2006 was issued to the respondent requiring it to submit its stand and further why the recovery of the wrongly availed service tax be not made from it. The adjudicating authority thereafter by ord....

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....ers. Without the firm order, the respondents were not expected to remove the goods to a foreign destination. Therefore, the submission of the learned DR that these activities are post-removal activities cannot be accepted. Further, the definition of the 'input services' includes services used in relation to 'sales promotion' and these activities can rightly be described as sales promotion activities. Sales promotion activities undertaken at given point of time also aims at sales of goods which are to be manufactured and cleared on future. Any advertisement given as a long term impact cannot be treated as post- clearance activities and, therefore, sales promotion has been specifically included in the definition of input services. As regards ....