TaxTMI 
TaxTMI 
2013 (11) TMI 1074
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....w that the commission agent's service (Business Auxiliary Service) for procuring sales orders is not covered by the definition of 'input service', issued five show cause notices for disallowing the Cenvat credit, its recovery alongwith interest and imposition of penalty. The Jurisdictional Assistant Commissioner by five separate orders, disallowed the Cenvat credit and confirmed the Cenvat credit demands alongwith interest and imposed penalties under Rule 15. On appeals being filed to Commissioner (Appeals), the Commissioner (Appeals) by a common order-in-appeal dismissed the appeals against which these five appeals have been filed. 2. Heard both the sides. 3. Shri Mayank Garg, Advocate, the learned Counsel for the appellant, pleaded ....
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....h Court has also taken note of the judgment, Hon'ble Punjab & Haryana High Court in the case of CCE, Ahmedabad vs. Cadila Healthcare Ltd. (supra) and has expressed the view that this Court is unable to concur with the view taken by Hon'ble Punjab & Haryana High Court on this issue. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have considered the submissions from both the sides and perused the records. 6. I find that an identical issue was involved in the case of Birla Corporation Ltd. vs. CCE, Lucknow [appeal No. E/1270/2011-EX (SM)] and in that case the Tribunal after considering the judgment of Hon'ble Gujarat High Court in the case of CCE, Ahmedabad vs. Cadila Healthcare Ltd. (supra), judgment of Ho....
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....ess' in the definition of 'input service' has to be interpreted on the basis of the activities mentioned after the words 'such as' following this expression and that the activities covered by this expression must be similar to the activities which are mentioned as illustrative activities and on this basis, Hon'ble High Court has given a finding that procuring sales orders through commission agents is not an activity, which is similar to the activities mentioned as illustration of the 'activities relating to business'. 7.1 However, I find that the Hon'ble Bombay High Court in the case of Ultra Tech Cement reported in 2010 (260) ELT 369 (Bombay) in para 28 and 29 has given the following interpretation of the expression 'activities relating....
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....used in or in relation to manufacture of final products, but extends to all services used in relation to the business of manufacturing the final product. 29. The expression 'activities in relation to business' in the definition of 'input service' postulates activities which are integrally connected with the business of the assessee. If the activity is not integrally connected with the business of the manufacture of final product, the service would not qualify to be a input service under Rule 2 (1) of the 2004 Rules. 7.2 Thus in para 28 and 29 of the above judgment, Hon'ble Bombay High Court has in clear terms held that the expression 'activities relating to business' in the definition of 'input service' in Rule 2 (l) covers all the ac....
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....lant and besides this, a number of judgments of the Tribunal, as mentioned above, are also in favour of the appellant, it is those judgments which have to be followed. 8. Rule 2 (l) of Cenvat Credit Rules, 2004 was amended w.e.f. 1.4.2011 and by this amendment, the expression 'activities related to business' in the inclusive portion of the definition of 'input service' was excluded. However, the expression 'advertisement or sales promotion' was retained. The Board vide Circular No.943/4/2011-CX dated 29.4.2011 (S.No.5 of the Table) in respect of the question 'Is the credit of Business Auxiliary Service (BAS) on account of sales commission now disallowed after the deletion of expression 'activities related to business' clarified as under ....