TaxTMI 
TaxTMI 
2017 (12) TMI 1502
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....of the appellant Further the Commissioner(Appeals) has also reduced the penalties in two appeals, Since the issue in all the six appeals is common and the impugned order is also common, all the six appeals are being disposed of by this common order. 2.1. Briefly the facts of the present case are that the appellants are engaged in the manufacture of asbestos cement products falling under chapter heading 681 14010 and are availing input cenvat credit on capital goods and input services. Appellants have their Head office at Chennai and the Head office has availed various services like sole selling agency commission etc. the Head Office is registered as input service distributor(ISD) and distributed the service tax paid on various services t....
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.... 13/01/2014 01/2013 to 09/2013 Rs.4,06,539/- 09/06/2014 10/2013 to 03/2014 Rs.94,267/- 24/11/2014 04/2014 to 09/2014 Rs.2,67,286/- 15/07/2015 10/2014 to 03/2015 Rs.1,69,34/- 18/01/2016 04/2015 to 09/2015 Rs.2,25,717/- 4. Heard both the patties and perused records. 5.1. The learned consultant for the appellant submitted that impugned order is not sustainable in law as the same has been passed by wrongly interpreting the definition of input service as contained in Rule 2(l) of CENVAT Credit Rules, 2004 and also that the impugned order is contrary to the binding judicial precedent on the same issue. He further submitted that the sole selling....
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....ly to manufacture and further only up to the place of removal is available, the scheme of CENVAT credit never restricts credit up to the place of removal and restriction of credit up to the place of removal is only with respect of outward transportation of goods and not advertisement and sales promotion expenses. The learned consultant further submitted that the CESTAT Bench at Ahmedabad in the case of CCE&ST, Surat-II Vs. Shree Kamrej Vibhag Khand Udyog Sahakari Mandli Ltd. [2014(36) str 814 (Tri. Ahmd.)], after considering the decision of Cadila Healthcare Ltd., in para 7 & 8, has held that if the services are sales promotion then CENVAT credit is available. He further submitted that in the appellant's case also the facts are identica....
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.... squarely covered by various decisions cited supra. Further I also find that the sales commission is directly attributable to the sales of the product. Any activities which amounts to sale of the product is deemed to be sales promotion activity in the normal trade parlance. The commission is paid on the sale of the product / services with an intention to boost the sale of the company. In view of this, the sales commission has a direct nexus with the sales which in turn is related to the manufacture of the product. It is to be understood that there need not be manufacture unless there is a sale of product. To increase the manufacturing activity encouragement is being given for increased sales. Hence the commission paid on sales becomes part ....