TaxTMI 
TaxTMI 
2023 (3) TMI 575
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.... (Appeals) has dismissed the same. Hence, the Appellant is before the Tribunal. 3. The Ld. Advocate appearing on behalf of the appellant submits that the Services of the Commission Agent is not in relation to either sale of their product or for providing any sales promotion services. They have engaged the service of Commission Agent to collect the debts from various subscribers. Based on the collection done by the service provider, a percentage to the same is given to them as commission. The Appellant have also submitted some sample copies of the invoices raised by the service provider. The Ld. Advocate submits that on identical issue, the coordinate Bench of CESTAT, Chennai has taken the view that they are eligible for the Cenvat Credit and submits a copy of the relevant case law of Vodafone Essar Cellular Ltd. Vs. Commr. of CGST, Chennai, 2018 (9) TMI 985-CESTAT Chennai. 4. He also relies on similar issues decided by Mumbai Tribunal in the following cases:- (i) Bajaj Finance Ltd. Vs. CCE, Pune 2018 (10) GSTL 251 (Tri. Mumbai) (ii)Bajaj Finance Ltd. Vs. CCE, Pune, 2019 (6) TMI 1593-CESTAT Mumbai 5. He further submits that the allegation in the SCN was on....
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....ssed. 10. Heard both sides. 11. The relevant portions of the judgment of Hon'ble Gujarat High Court in the case of Cadila Healthcare Ltd. are reproduced below;- 5.2 Commission paid to the foreign agents : The assessee availed of CENVAT credit of Rs. 39,45,791/- towards commission paid to foreign agents. According to the assessee, out of the total amount paid as service tax, they had availed of CENVAT credit only on that part which was attributable to dutiable products manufactured in their plant only and that no CENVAT credit has been availed on exempted goods. It was contended that service tax paid on commission paid to commission agents for sale of final products is available as credit according to the inclusive part of the definition of input service, which includes services in relation to sales promotion. Reference was made to the definition of business auxiliary service as defined under Section 65(19) of the Finance Act, 1994 which lays down that business auxiliary service means any service in relation to (i) promotion or marketing or sale of goods produced or provided by or belonging to the client or (ii) promotion or marketing of service provided on behalf of ....
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.... promotion of sales in general to the consumers at large and are more in the nature of the activities referred to in the preceding paragraph. Commission agent has been defined under the explanation to business auxiliary service and insofar as the same is relevant for the present purpose means any person who actson behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration. Thus, the commission agent merely acts as an agent of the principal for sale of goods and such sales are directly made by the commission agent to the consumer . 12. From the above extract, it can be observed that the issue before the Hon'ble High Court was in respect of sale of goods, promotion of sale of goods, etc. by the Commission Agent The Hon'ble High Court held as Commission Agent in this case is only selling the goods and not undertaking any Sales Promotion work, the Respondent would not be eligible for the Cenvat Credit. Further it would be relevant to note here that an amendment was brought in w.e.f. 3.2.2016 to allow Cenvat Credit on 'Sales Promotion' also, so as to overcome the difficulty faced by the assesses in view of Gujrat High Court....
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....overy agent to the appellants, repossession of vehicle was carried out by the recovery agent in connection with the recovery of the overdue loan amount. In our view the lending service is not limited to disbursing the loan but it includes the recovery of the said lended money which is one of the vital part of the overall activity of lending of money. Therefore the service received for taking repossession of the vehicle by recovery agent is an input service which is used for the service of lending. The definition of input service under Rule 2(l) of Cenvat Credit Rules, 2004 reads as under:- xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx From the above definition it can be seen that any service used for providing output service is an input service. As discussed above, the service of taking repossession of the vehicle which is an activity in relation to recovery of the loan is used for overall service of lending. Therefore as per the main part of the definition, 16. The definition of input service as per Rule 2 (l) of Cenvat Credit Rules, 2004 during the period under dispute reads as under:- "input service" means any service, - (i) used by a pr....
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....Bank (Mumbai) Ltd. v. Coop. Bank Employees Union, AIR 2007 SC 2320, the Hon'ble Court held that "on the other hand, when the word "includes" is used in the definition, the legislature does not intend to restrict the definition; makes the definition enumerative but not exhaustive. That is to say, the term defined will retain its ordinary meaning but its scope would be extended to bring within it matters which in its ordinary meaning may or may not comprise". 6. In the circumstances, when the services disputed in this case viz. Business Auxiliary Service, Banking and Other Financial Services and Technical Services are not specifically excluded by the exclusion portion of the definition and in any case they are services essential directly or in relation to manufacture or business activities, the same would definitely fall within the ambit of Rule 2(l) ibid. In the event, I hold that all the services disputed herein are eligible input services for the purpose of Rule 2(l) ibid. 19. The Hyderabad Tribunal in the case of Pepsico India Holdings (Pvt.) Ltd. Vs. Commr. of Central Tax, GST Commissionerate, Tirupati 2022 (56) G. S. T. L. 22 (Tri.-Hyd.) has held as under:- ....