TaxTMI 
TaxTMI 
2019 (10) TMI 685
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....ppeals), Central Excise, Nasikh is assailed in this order. 2. Factual backdrop of the case is that appellant is engaged in manufacture of excisable goods namely Organic Surface Active Agents and Washing Preparations and availing Cenvat Credit of excess duty paid on input including service tax paid on commission given for sales promotion. During audit, it was pointed out that appellant had wrongly taken Cenvat Credit of service tax paid on commission on sales paid to commission Agents for sales of in its goods cleared to their customer between January 2010 and November 2014 which as per Rule 2(l) of CCR, 2004, being directly connected with sales is not eligible credit. It was put to show cause for recovery of Rs. 11,72,004/- along with in....
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....ce held on 28/29.10.2015, he argued that credit is admissible to service concerning sale of dutiable goods on commission basis since it was a credit on Business Auxiliary Service on account of sales commission for which the order passed by the Commissioner (Appeals) is required to be set aside. 4. In response to such submission, Learned Authorised Representative for the respondent Department Ms. Anuradha Parab, Asst. Commissioner argued in support of the reasoning and rationality of the order of the Commissioner (Appeals) and stated that Para 4 of Exhibit-B i.e., copy of agreement dated 1-4-2008 indicates that the payment was made as commission on sales and order-in-original clearly reveals that no evidence in the nature of sales promoti....
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....erred to in the proceeding para, i.e., in para (vii), which is reproduced below for better clarity. "(vii) The expression 'sales promotion'has been defined in the Oxford Dictionary of Business to mean an activity designed to boost the sales of a product or service. It may include and advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telephone selling, personal letters etc. In the Oxford Dictionary of Business English, sales promotion has been defined as a group of activities that are intended to improve sales, sometimes including advertis....
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....rer". "Manufacturer" is having all rights to amended the prices at any time under intimation to "SPA" as there is no standard price list is declared by "Manufacturer". "Manufacturer" will give free samples to "SPA" for trial purpose at Customer's end for existing as well as new product if any. 4) "Manufacturer" is agreed to give commission on selling price. The percentage of commission may be varied product to product and shall be intimated time to time to "SPA" as and when change. "Manufacturer" is not liable to pay reimbursement of expenses which will borne by "SPA" for advertising, travelling additional discount if any, gifts, exhibition etc." 7. The above 2 paras of agreed upon terms clearly indicates that free samples for d....