2022 (11) TMI 97

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..... 2. Bereft of unnecessary detail facts that give rise to this appeal is that EA-2000 Audit was conducted in the Appellant's manufacturing unit which had observed that Appellant had availed credits against services rendered by the commission agents namely M/s. Jiwanram Sheodutt Rai (in India) and M/s. Meer Javed Jafri located overseas (in U.K.). From the entry made in the annual report and accounts for the financial year 2013-14, it is noticed that expenditure shown on the other expenses includes "promotional expenses" and "sales commission" separately under different columns. As Appellant was found to be aware of the difference between the two and sale promotion was not covered under the definition of input services in Rule 2(l) of CENVAT....

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....l) after sub-clause (c) of the CENVAT Credit Rules, 2004 that sale promotion includes sale of dutiable goods. It reads : "For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis" This being facts on record, submissions of the Counsel for the Appellant is of two fold: (A) Besides the fact that sale agreement between overseas agent, though relates to U.K. territory is similar also for UAE, shows the nature of appointment was an agent who was to provide liaisoning ervices including but not limited to marketing and selling of manufacturer's products for which apart from application of Rule 9 of POP Rules, 2012 for intermediary overseas entity, the service received by the Appella....