2018 (2) TMI 940

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.... agent services procured by the appellant and also the ineligible cenvat credit availed in respect of common inputs and input services which are used to utilise for trading activity. 4. During the period April 2009 to March 2010, appellant had paid commission to various individuals for procuring Annual Maintenance Contracts for the maintenance of X-Ray Baggage/Cargo Inspection Systems (XBIS) and door frame X-Ray screening machines. Having paid the commission and service tax being paid, they availed cenvat credit, which the department contested saying that the appellant is ineligible to avail such credit and the amount involved on this account is approximately Rs. 2,43,535/-; appellant is engaged in trading activity also during the period....

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.... commission agent services is not eligible for availing of cenvat credit as held by Hon'ble High Court of Gujarat in the case of Cadila Healthcare Ltd. As regards the cleaning activity, it is her submission that Hon'ble High Court of Madras in the case of FL Smidth Pvt. Ltd [2014-TIOL-2186-HC-Mad-CX] and also by Hon'ble High Court of Madras in the case of Ruchika Global Interlinks [2017-TIOL-1235-HC-MAD-ST] has clearly held that pre and post 01.04.2011, trading activity will amount to rendering of exempted services and needs to be reversed. 6. On careful consideration of the submissions made by both parties, I find that in respect of service tax paid on Commission Agent Services, appellant is not eligible to avail cenvat credit and the j....