2015 (10) TMI 51

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....itional Commissioner (AR), for the Respondent. ORDER The short issue involved in this case is whether appellant is eligible for the benefit of Cenvat credit of service tax paid on sales commission paid by them to their agents. The service tax has been paid treating the services rendered as Business Auxiliary Service. Show cause notice was issued to the appellants proposing to deny the credit....

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....Further he also submits that the Board vide Circular No. 943/4/2011-CX., dated 29-4-2011 had clarified that benefit of Cenvat credit paid by commission agents as sales commission would be admissible. 3. The learned AR on the other hand would rely upon the decision of the Hon'ble High Court of Gujarat in the case of CCE, Ahmedabad v. Cadila Healthcare Ltd. - 2013 (30) S.T.R. 3 (Guj.) to sub....

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....d by the learned CA is squarely applicable to the facts of this case. For ready reference item No. 5 of the issue framed by the Board and the clarification issued by the Board is reproduced below : 5. Is the credit of Business Auxiliary Service (BAS) on account of sales commission now disallowed after the deletion of expression "activities related to business"? The definition of input ser....

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....d that the said service was not an input service used directly or indirectly in the manufacture of final products. However the lower authorities have taken a view that the activity undertaken by the commission agents was only sales and not sales promotion. In my opinion by doing so the lower authorities have travelled beyond the show cause notice and reliance of the learned CA on the decision in t....