2025 (1) TMI 628

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....s allowed and the order-in-original disallowing the cenvat credit amount and directing recovery thereof along with interest and penalty was set aside. 2. The respondent M/s. Krish Infrastructure Pvt. Ltd., Alwar  is engaged in providing taxable service of 'Construction of Residential Complex' 'Real Estate Agent Services' and 'Business Auxiliary Services'. During the audit of records by officers of the Central Excise Audit Commissionerate, Jaipur, it was observed that the respondent had wrongly availed cenvat credit of service tax on Commissions/Brokerage paid to Commission Agents on sale of flats during the period from January, 2014 to March, 2015, in violation of Rule 2(1) and 3 of the Cenvat Credit Rules, 2004, as the service does....

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....rish Icon Final Order No.52380/2018 dated 02.07.2018. In the said case, the learned Member considered the earlier decision of the Tribunal in the case of Essar Steel India Ltd. Vs. Commissioner of Central Excise & ST, Surat-I 2016(335) ELT 660 (Tri.-Ahmd.), which was passed holding that Explanation to Rule 2(l) of the Rules inserted vide Notification No.2/2016-CX (NT) dated 03.02.2016) is declaratory in nature and retrospectively effective. The relevant paragraph of the decision is quoted as below:- "20. But, the Hon'ble Gujarat High Court in the case of Cadila Healthcare Ltd. (supra) was unable to concur with the contrary view taken by the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Ludhiana ....

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.... vide Circular dated 29.04.2011. The relevant point in the Circular read as under:- "Moreover activity of sales promotion is specifically allowed and on many occasion, the remuneration for same is linked to actual sale. Reading the provisions harmoniously, it is clarified that credit is admissible on the services of sales of dutiable goods on commission basis." 6. Learned Authorised Representative for the Department has not disputed the decisions referred above and have accepted the same. He has also placed on record the latest decision of this Tribunal in The Commissioner, Central Goods & Service Tax, Jaipur Vs. M/s.Bharti Hexacom India Ltd. 2023 (5) TMI 520-CESTAT-New Delhi (Final Order No.50631/2023 dated 27.04.2023, where al....