2019 (8) TMI 1311

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....foreign agents, who procured customers and orders and advised the Assessee, a 100% EOU to manufacture and export those garments the foreign country. 2. The Adjudicating Authority initially disallowed the Cenvat Credit holding that such commission paid to foreign agents did not fall within the ambit and scope of Input Services under Rule 2(l) of the Cenvat Credit Rules, 2004 and therefore, the Assessee was not entitled to such Cenvat Credit, but, later, the Tribunal allowed the Appeal of the Assessee and held in favour of the Assessee as under:- "5. We take note of the arguments put forward by the ld. counsel for the appellant with regard to remand of the matter by the Hon'ble High Court of Madras. Indeed at the time of reman....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eted from the definition. The period involved in the present case is prior to 1.4.2011. As explained by appellant counsel, the appellants herein being 100% EOU, they manufacture the goods after receiving the orders placed by the foreign purchasers. Foreign Agents help to procure market from abroad for the goods manufactured by the appellant. It is also to be seen that the goods manufactured by the appellant are women inner garments fashion of which the design, need undergo change periodically. The appellants have to manufacture after getting the orders placed specifying the fashion/design/specification. The manufacture of such goods without such specification may not find any market after clearance. The appellant has explained in reply to S....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Agreement and even though it was contended by the Assessee that such service rendered by the foreign agents would fall within the definition of Input Services under the Cenvat Credit Rules, 2004, the Adjudicating Authority has not accepted the said submission of the Assessee and since the foreign Agents in question acted only as selling agents, the services rendered by them did not amount to Input Services as defined in Cenvat Credit Rules 2004 and therefore, the learned Tribunal erred in holding in favour of the Assessee. 5. On the other hand, the learned counsel, Mr.S.Muthu Venkatraman appearing for the Assessee relied upon the judgment in the case of Commissioner of Central Excise, Ludhiana v. Ambika Overseas (2012 (25) STR 348 (P&H....