2018 (11) TMI 1375

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....ral Excise Registration. During the period from November 2014 to October 2015, the appellant had taken input credit on Business Auxiliary Services in respect of service tax charged by their Commission Agents for sales promotion of their products, which included procurement of orders for the appellant. 2.1 Show Cause Notices/Statements of Demand were issued to the appellant proposing to disallow the CENVAT Credit on the above service viz. Business Auxiliary Service, besides other services on the ground that the appellant is not eligible to avail CENVAT Credit since the same would not come within the definition of "input service" under Rule 2(l) of the CENVAT Credit Rules (CCR), 2004. The Show Cause Notice also contemplated imposition of p....

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....ces along with interest and penalty. Being aggrieved by the disallowance as above and consequent demand on the above services, the appellant had filed appeals before the first appellate authority who vide impugned Order-in-Appeal Nos. 11-15/2018/ AUDIT-II dated 16.01.2018 allowed the credit on Courier Service, but however upheld the demand on Business Auxiliary Service. Aggrieved by the denial of credit on Business Auxiliary Service, the appellant has filed the present appeals before this forum. The details of the amount of credit denied on Business Auxiliary Service (BAS) for the respective periods is given below : Sl. No. Appeal No. Impugned O-I-A No. & Date SCN/SOD No. & Date Period involved Amount of Credit denied on B....

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....e on hand, I find that whether the service of Commission Agent is an eligible input service under amended Rule 2(l) of the CENVAT Credit Rules, 2004, is the crux to be decided. The CBEC Circular No. 943/4/2011-CX dated 29.04.2011 has clarified the issues relating to CENVAT Credit Rules and the relevant credit for the issue on hand is at Sl. No. 5, which reads as under : Sl. No. Issue Clarification "1 . . . .... .... 5. Is the credit of Business Auxiliary Service (BAS) on account of sales commission now disallowed after the deletion of expression "activities related to business"? The definition of input service allows all credit on services used for clearance of final products up to the place of removal. M....