TaxTMI 
TaxTMI 
2009 (7) TMI 125
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....rer of PIG Iron, Ductile Iron (Spun Pipes), Slag Cement falling under various chapters of the Central Excise Tariff Act, 1985 and are clearing the same on payment of appropriate Central Excise duty. The appellant is also availing Cenvat credit of inputs on Service Tax paid by it on the services received by it. On scrutiny of the monthly returns for the month of March 2006, it was noticed by the lower authorities that the appellant had availed Cenvat credit on the commission paid to its sales commission agents, during the period 2004-05 and 2005-06. Service Tax was paid on the sales commission under the category of "Business Auxiliary Services". It was noticed by the lower authorities that the said credit of Service Tax paid on the sales com....
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....s auxiliary services" and the revenue has collected Service Tax on such sales commission. He would submit that the commission agents were appointed by the appellant to meet the marketing and sale of the products produced by the appellant. It is his submission that the view which has been taken by the lower authorities is narrow and totally opposed to the concept of Cenvat Credit Rules. It is his submission that for running any business, a manufacturer would be availing number of services and Service Tax involved in such services is naturally available as Cenvat credit, as the entire expenditure so incurred is solely for running the business only. It is his submission that the issue will be covered by the decision of the Tribunal in the case....
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....at Credit of Rs. 49,82,605 availed, being the credit of service tax paid on Business Auxiliary Services (Sales Agents Commission), treating the said service as not falling under Input Services, is legally tenable." 5.1 As regards the issue No. (1) as noted hereinabove recorded by us, it is found that the appellant had not contested the said issue before the lower authorities nor is it being contested before us. It is also seen that the amounts in issue No. (1) have already been reversed by the appellant and it claims that it was done so due to mistake on its part. It is only contesting the penalty imposed on it under both the issues. Since the appellant is not challenging the amounts on which it had availed Cenvat credit wrongly, we upho....
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....on to the manufacture of final products and clearance of final products from the place of removal, and include services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal.' It can be seen from the above reproduced po....