2019 (1) TMI 236

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.... is whether the respondent / assessee is entitled to cenvat credit on input service received from selling agents, to whom the appellant paid by way of sales commission on the sales effective through them. 3. The brief facts are that the respondent/ assessee are registered for manufacture of Crown Cork/Pet Pre Form. In the show cause notice, it was alleged that for the period August 2014 to December 2015, the appellant have availed cenvat credit on payment of such commission to the selling agent/commission agents. It appeared to revenue that such credit is not available in the light of statutory provisions and procedure laid down for availing the credit. The selling agent is directly concerned with sales rather than sales promotion, as su....

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....commission on account of sales of goods, his services qualify to be input service and cenvat credit of service tax paid on such service is admissible to the recipient of service. 5. Ld. Commissioner further took notice of the notification no.02/2016CX (NT) dated 3 February, 2016, has resolved different views of the different High Courts. The notification amended the CENVAT Credit Rules, 2004 and inserted the explanation in Rule 2 in clause (l), after sub-sub clause (C). It is a settled legal position that an explanation merely explains what is already there in the main part of the Rule or section. The Ld. Counsel further urged that as principle of law, an explanation is the nature of clarification, has retrospective effect. Further, it h....