TaxTMI 
TaxTMI 
2019 (1) TMI 1027
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....sales agent/ commission agents and was taking cenvat credit of the service tax paid thereon for sale of finished goods cleared to their customer despite that the same is not eligible cenvat credit in terms of definition of input service in Rule 2(l) of Cenvat Credit Rules, 2004. Resultantly, SCN No. 2434 dated 26.11.2015 was issued proposing the recovery of allegedly wrongly availed cenvat credit of Rs. 21,46,180/- alongwith the interest at the appropriate rate and the proportionate penalties. During the period from April, 2011 to March, 2015 the said proposal has been confirmed vide the Order-in-Original No. 90/149/114-117 dated 14.06.2017 however the Appeal thereof has been allowed by Commissioner(Appeals) vide Order-in-Appeal No. 161-163....
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....as held by the Tribunal Ahmedabad in the decision of Essar Steel India Ltd. Vs. C.C.E. & S.T., Surat 2016(335) E.L.T. 660 wherein the decision of Ambika Overseas (supra) was followed. It is impressed upon that Commissioner(Appeals) has rightly appreciated the above facts as such the Order is liable to be sustained. 4. After hearing both the parties, it is foremost important to look into Rule 2(l) of CCR 2004 which reads as follows: "(l) "input service" means any service- (i) Used by a provider of output service for providing an output service; or (ii) Used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and cleance of final products upto the place of removal and includes serv....
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....ee was entitled to benefit of cenvat credit of service tax. It would be advantageous to notice here the findings recorded by the Tribunal in para 6 of its order which are to the following effect: I have carefully considered the submissions from both sides. The canvassing and procuring orders are activities preceding removal of the goods by the manufactures. Without the firm order, the respondents were not expected to remove the goods to a foreign destination. Therefore, the submission of the Ld. DR that these activities are post removal activities cannot be accepted. Further, the definition of the 'input services' includes services used in relation to 'sales promotion' and these activities can rightly be described as sales promotion activ....
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....017 dated 05.09.2017 the Tribunal came to the conclusion that assessee is entitled to avail cenvat credit on commission paid to agent who has effected the sale on behalf of the assessee. It was held therein that in view of the two contradictory decisions, the legislature took a call for explaining the meaning of sales promotion by inserting: "20. But, the Hon'ble Gujarat High Court in the case of Cadila Health Care Ltd. (supra) was unable to concur with the contrary view taken by the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Ludhiana Vs. Ambika Overseas (supra). The Hon'ble Gujarat High Court held that this issue is concerned, the question is answered in favour of the Revenue and against the assesse....