2015 (11) TMI 351

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.... appeal is disposed of on its merits after perusing the memorandum of appeal, the Primary and the lower Appellate orders and after hearing the ld. A.R. for the respondent/Revenue. 2. The assessee is in appeal against the Order of the ld. Commissioner (Appeals), Central Excise, Raipur -II dated 7.4.2011 whereby assessee's appeal against the Primary adjudication order dated 31.9.2010 passed by the Additional Commissioner, Central Excise, Raipur, was rejected. 3. Proceedings were initiated pursuant to an audit of the assessee's business which revealed that during 2007-08 and 2008-09 (upto October 2009),assessee earned specified amounts towards commission and brokerage and also paid brokerage to its sub-brokers at rates which were....

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....e Invoice No.COM/17 dated 3.3.2009 of M/s Nalwa Steel & Power Pvt. Ltd., Raigarh I find that the appellant earned commission @ Rs. 50/- PMT. Further, on going through the Invoice No.COM/STR/01 dated 1.5.2008 of M/s Pawan Industries, I find that M/s Pawan Industries has charged commission at the rate of Rs,1100/- , Rs. 1300/- from the appellant in lieu of goods sold by them on behalf of the appellant. It is also a fact that during the period 2007-08 , and 2008-09 (upto 10/2008) the appellant earned Rs. 3,18,63,889/- and Rs. 2,65,36,158/- against Commission and Brokerage @ Rs. 50/-to Rs. 300/- during the year 2007-08 and Rs. 50/- to Rs. 400/-during the year 2008-09 (upto 10/2008). But it was found that the appellant had paid brokerage to thei....

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....ax credit taken on such input service received from the broker is not admissible being no nexus with providing of output service. It is also a fact that the passage of time and clear pronouncement of law by Apex Court in case of Maruti Suzuki Ltd. 2009 (240) ELT 641 (SC) holding that the output when depends on the inputs and both have integral connections, nexus and intimacy as well as relevancy, the appellant shall be allowed cenvat credit on that input. In the instance case as there is no nexus between the input service received by the appellant with the output service provided, therefore , the service received by the appellant from sub-broker cannot be treated as input service and hence service tax credit taken on such input service is a....