2018 (1) TMI 1009

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....dit of inputs, capital goods and input services. On scrutiny of ER-1 of March 2006, it was noticed that the appellants have taken credit of service tax on sales commission paid to M/s. Agnes Bruno Limited, Calcutta for securing Rs. 123.5 crores design, engineering, manufacture and supply contract order for plant and machinery to M/s. Binani Cement Ltd. On verification of records, it was found that the appellants had manufactured and supplied excisable goods only to the tune of Rs. 8,26,73,721/- to M/s. Binani Cement Ltd. The remaining part of materials valued to the tune of Rs. 111,51,44,499/- which were supplied by the appellant to M/s. Binani Cement Ltd. were not goods manufactured by appellant, but were bought out materials. The departme....

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..... The services of sales promotion were consumed in relation to business and therefore qualifies for credit. Further, the word includes used in the definition of input services enlarges the scope of the definition. The Commissioner has travelled beyond the scope of the definition making his own presumption that services consumed in relation to manufacture alone qualifies for credit without even looking into the inclusive part of the definition. The Commissioner failed to appreciate that once the expenses are incurred in connection with business activities, the services fall within definition of service and the tax paid is eligible for credit. Merely because the bought-out goods were also used for executing the contract it cannot be said that....