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2018 (5) TMI 24

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....ng 1302 1919, 2815 1110 and 29420090 of Central Excise Tariff Act, 1985. During the audit of the financial records of the appellant by the internal audit team, it was observed that the appellant had availed CENVAT credit on „sales commission‟ paid to the commission Agents during the period of March 2010 to November 2014 which is ineligible. It was noticed from the CENVAT credit register, input/input service invoices that the appellant have availed CENVAT credit to the tune of Rs. 2,04,542/- on sales commissions paid to M/s. Medilux Laboratories Pvt. Ltd. M/s. Deep Nutraceuticals, M/s. Shivas Farma Casa (P) Ltd. M/s. Shah Pharmaceuticals who are their „Commission Agents‟, involved in sales of the goods manufactured by....

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....e in law as the same has been passed without considering the factual and the legal position and without following the binding judicial precedent. He further submitted that the Board Circular No.943/4/2011-cx dated 29.4.2011 clarifies that the definition of „input service‟ allows all services used for clearance of final products up to the place of removal. Moreover, the activity of sales promotion is specifically allowed and on many occasions, the remuneration for the same is linked to actual sale. Reading the provisions harmoniously, it is clarified that the credit is admissible on the services of sale of dutiable goods on commission basis. He also submitted that the Notification No.2/2016-CE dated 3.2.2016 inserted Explanation ....