2017 (1) TMI 1234

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....g 27 34 of Central Excise Tariff Act, 1985. During the year 2011-2012, appellant has exported final products manufactured by them also exported goods imported by them. They have taken CENVAT credit of service tax amounting Rs. 2,95,338/- paid by them on import of services received M/s. Carl Bechem Lubricants Middle East FZC under reverse charge mechanism under Section 66A of the Finance Act, 1994. During the audit, it was observed by the Department that the assessee had availed service tax credit on marketing consultancy services for traded goods (exempted goods) rendered by M/s. Carl Bechem Lubricants Middle East FZC. The Revenue raised the objection that the appellant is eligible to take proportionate CENVAT credit of service tax on manuf....

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....the assumption which is not correct. He further submitted that the appellant during the year 2011-12 has exported the final products manufactured by them and also exported the goods imported by them. In order to promote the sale of the product manufactured by them in India, appellant has entered into an agreement with M/s. Carl Bechem Lubricants Middle East FZC. As per the terms of the agreement, the scope of the work is to (i) undertake market study, identify potential customers for the products; (ii) evaluating proper pricing. and advertisement and sales promotion strategy; (iii) advice on legal and regulatory compliance; and (iv) general support including liaison with government agencies. 4.1 He further submitted that the demand has bee....