2017 (10) TMI 649

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.... appellants Vijay Chemical Industries are in appeal against denial of cenvat credit on the services of commission agent availed by them. 2. Ld. Counsel for the appellants argued that they had availed services of commission agent for sales of the products the credit of such services have been denied. Relying on the decision of the Hon'ble High Court of Gujarat in Cadilla Healthcare Ltd. - 20....

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....1-CX dated 29.04.2011 where in Sr. No.5 it was clarified that the definition of input services allows all credit of services used for clearance of final product up to place of removal. Moreover activity of sales promotion is specifically allowed and on many occasion the remuneration of same is linked to the actual sale. In the said decision, the explanation added to the Cenvat Credit Rules in Rule....

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....d travels services and membership fee of SSI exemption. Since the same has not been challenged, the same cannot be considered now. 5. Insofar as demand for the services of commission agent received by the appellant is concerned, it is seen that there are differing decisions of Hon'ble High Court in Cadilla Healthcare Ltd. holding that the said credit is not admissible. There is also a decis....

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.... commission basis. 6. It is seen that CBEC is of the view that credit on said services should be allowed and was advisable prior to deletion of "activity related to business." 7. It is seen that show-cause notice relies on the B-17 bond executed by the appellant as the appellant were 100% EOU. A perusal of the terms of B-17 bond extracted in show-cause notice shows that the appellants are ob....