2026 (4) TMI 688

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....he Central Excise Tariff Act, 1985. The appellant avails CENVAT Credit of Central Excise duty paid on the inputs, raw materials, capital goods and service tax paid on the input services. During the disputed period, the appellant had availed CENVAT Credit of service tax paid on the input services in respect of the amount of commission paid to the commission agent against sale of goods. Taking of such CENVAT Credit by the appellant was disputed by the Department on the ground that such service should not be considered as input service as per the definition contained in Rule 2(l) of the CENVAT Credit Rules, 2004. The show-cause notice issued in this regard was adjudicated by the learned Commissioner of Central Excise & Customs, Belapur vide or....

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....cifically finding place in the inclusive part of the definition of 'input service', defined under Rule 2(l) of the Rules of 2004. Considering such definition clause, the CBEC in the Circular dated 29.04.2011 has clarified as under: - 5. Is the credit of Business Auxiliary Service (BAS) on account of sales commission now disallowed after the deletion of expression "activities related to business? The definition of input services allows all credit on services used for clearance of final products upto the place of removal. Moreover activity of sale promotion is specifically allowed and on many occasions the remuneration for same is linked to actual sale. Reading the provisions harmoniously it is clarified that credit is admissible on ....

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.... Section 65(19) of the Finance Act, 1994 which defines the Business Auxiliary Service. While examining the definition of Business Auxiliary Service, where the agent is engaged in either promotion or marketing or where sale of goods produced or provided by or belonging to the appellant, the Hon'ble High Court has considered the issue of sales promotion and has not considered the issue of marketing or sale of goods and this Tribunal has examined that issue in the case of Essar Steel India Ltd. (supra) wherein it has been held that the assessee is entitled to avail Cenvat credit for commission paid to the commission agent who effected the sale of goods manufactured by the appellant. Further, I find that Hon'ble High Court of Punjab & Haryana i....