TaxTMI 
TaxTMI 
2016 (12) TMI 915
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....e issue in this appeal is whether the respondent assessee is entitled to Cenvat credit on sales promotion expenses incurred by them during the period 2009-10 to 2013-14. 2. The appellant is a manufacturer of excisable goods, namely, Sugar & Molasses falling under Chapter heading No. 17011190 & 17031100 respectively. The Show Cause Notice was issued dated 15/12/2014, as pursuant to Audit, Revenue observed from scrutiny of Balance Sheet/Ledger that the assessee was availing Cenvat credit of Service tax on commission paid to various Commission Agents for sale of their final products during the Financial Year 2012-13 & 2013-14 (up to August 2014). The Superintendent vide letter dated 03/04/2014 directed the assessee to comply with the audit re....
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....al of the respondent assessee setting aside the Order-in Original relying on Notification No. 2/2016 CE (N.T.) dated 03/02/2016 wherein, in exercise of powers, the Cenvat Credit Rules, 2004 were amended and vide Rule 2 of the amendment rules, in Rule 2(l) after Sub-clause C explanation was inserted, namely: "Explanation For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis." The ld. Commissioner (Appeals) has observed that from the expression inserted in Rule 2(l) of Cenvat Credit Rules, 2004. It is clear, now, that sales promotion includes services by way of sale of dutiable goods on commission basis. Since this insertion has been a beneficial grant and not curtailin....
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....ty in the findings of the ld. Commissioner (Appeals). He, further, relies on the ruling of this Tribunal in the case of Essar Steel India Ltd Versus Commissioner of Central Excise & Service Tax, Surat-I reported at 2016 (335) E..T. 660 (Tri. Ahmedabad) wherein interpreting the retrospective effect of the inclusion of explanation, vide Notification NO. 2/2016 CE (N.T.) dated 03/02/2016 the Division Bench have observed an explanation inserted in Section/Rules, is generally to explain the meaning of the words contained in the Section/Rules. The purpose of explanation is to explain the meaning and content of the Section/Rule. Sometimes, the explanation may be inserted to clarify a doubtful point of law, which would be effective retrospectively.....