TaxTMI 
TaxTMI 
TaxTMI 
2012 (6) TMI 25
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....rds services received from selling agents during the period from April 2006 to September 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 (P.) Ltd. v. CCE [2009] 22 STT 130 (Bom.), and in the case of CCE v. Ultratech Cement Ltd. [2010] 29 STT 244 (Bom.). According to these decisions, service tax credit taken in respect of services rel....
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....ssions 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 clearance of final product from the place of removal and service was beyond stage of manufacture and clearance of goods and therefore cannot be considered as input service. The question as to whether the commission was in ....
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....d. and Ultratech Cement (P.) Ltd. (supra) are squarely applicable. In the case of Ultratech Cement (P.) Ltd. (supra) in paras 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 nexus to manufacturing activity need not be proved as regards input services in view of the inclusive part of the definition. I find both the decisions of the Hon'ble High Court of Mumbai cited by the lear....