TaxTMI 
TaxTMI 
2014 (6) TMI 385
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....483/- The commission agent employed by the appellant have procured sales orders for them for which they had received commission and on that commission the service tax has been paid. The department issued show cause notice for recovery of this cenvat credit on the ground that this service is not covered by the definition of 'input service' inasmuch as the same has no nexus with the manufacture of the Appellants final product. The show cause notice was adjudicated by the Asstt. Commissioner vide his order-in-original dated 14.07.2010 by which the demand of cenvat credit of Rs.4,99,483/- was confirmed along with interest and besides this, penalty under Rule 15 (2) of the Cenvat Credit Rules, 2004 was also imposed. The appeal filed to the Comm....
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.... the impugned order by reiterating the findings of the Commissioner (Appeals) and emphasized that the service of commission agent has no nexus with the manufacture of final product and that contrary view has been taken by the Hon'ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad Vs. Cadila Healthcare Ltd. reported in 2013 (30) STR 3 (Gujarat), in para-5.2 (vii), 5.2 (viii) and 5.2 (ix) of which, it has been held that services of commission agent for procuring export orders is neither covered by the term 'sales promotion' nor by the term 'activities related to Business', in the definition of 'input service', that in this judgement, the Hon'ble High Court in para 5.2 (x) also considered the judgement of Hon'ble P....
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....ivities which are integrally connected with the business of the assessee and only if the activity is not integrally connected with the business of the manufacture of final product, the service would not quality to be a input service under Rule 2(1) of the 2004 Rules. He emphasized that procurement of sales orders is an integral part of the manufacturing business and hence, this has to be treated as 'input service'. 6. I have considered the submissions from both the sides and perused the records. 7. The only point of dispute in this case is as to whether the service of procuring sales orders of cement through commission agents i.e. business auxiliary services being received by them is covered by definition of 'input service' or not. On....
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.... the present case, the question is, whether outdoor catering services are covered under the inclusive part of the definition of 'input service'. The services covered under the inclusive part of the definition of input service are services which are rendered prior to the commencement of manufacturing activity (such as services for setting up, modernization, renovation or repairs of a factory) as well as services rendered after the manufacture of final products (such as advertisement, sales promotion, market research, etc.) and includes services rendered in relation to business such as auditing, financing. etc. Thus, the substantive part of the definition 'input service' covers services used directly or indirectly in or in relation to the man....
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.... only an activity which is not connected with the business of manufacture of final products would not qualify as the 'input service' under Rule 2 (l). In para-28 of this judgement, Hon'ble Bombay High Court has emphasized that the definition of 'input service' is very wide and covers not only services, which are directly or indirectly used in or in relation to the manufacture of final products, but also includes various services used in relation to the 'business of manufacture of final products', be it prior to the manufacture of final products or after the manufacture of final products and that the definition of 'input service' is not restricted to the services used in or in relation to manufacture of final products. Same view has been tak....