2026 (5) TMI 1513

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.... impugned Order-in-Original No. 38/Commr/Bol/2017-18 dated 20.02.2018 passed by the Commissioner of Central Goods & Service Tax Commissionerate Bolpur Nanoor Chandidas Road, Sian, Bolpur, Dist -Birbhum-7312047. 2. M/s. Phillips Carbon Black Ltd. (herein after referred as the Appellant) are engaged in the manufacture of carbon black of various grades at its manufacturing facility at Durgapur. In accordance with the principle of value addition, the Appellant availed Cenvat Credit of various inputs, capital goods and input services and utilized the same for payment of excise duty. Such input services on which the Appellant availed Cenvat Credit interalia included the services procured from Commission Agents like Suntec Enterprises and Bajaj....

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....of the credit availed from 3rd February 2016 to June 2016 based on the amendment dated 03.02.2016 and confirmed the disallowance of the remaining Cenvat Credit of Rs. 3,14,46,392/-availed on sales commission services during the underlying period. Personal Penalty has also been imposed on Shri. Santosh Kumbhakar, Deputy Manager, Accounts under Rule 26 of Central Excise Rules, 2002. 2.3. Aggrieved against the disallowance of Cenvat credit along with interest and penalty and imposition of personal penalty on Shri. Santosh Kumbhakar, Deputy Manager, Accounts, both the appellants have filed these appeals. 3. The appellant submits that the instant proceedings were initiated against them based on the allegation that the expenses incurred by ....

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....MI 450 - CESTAT Kolkata. • Triveni Turbines Ltd. v. CCE, Bangalore, 2025 (3) TMI 1500 - CESTAT Bangalore. • Commissioner, CGST, Jaipur v. M/s. Bharti Hexacom India Ltd., 2023 (5) TMI 520 - CESTAT New Delhi • Stanley Seating v. CCE, Bangalore-III, 2017 (3) G.S.T.L. 137 (Tri. Bang.) • CGST, C & CE, Alwar v. Krishi Icon, 2018 (7) TMI 97 - CESTAT New Delhi • CCE Alwar v. Nirmal Developers, 2018 (9) TMI 376 - CESTAT New Delhi 3.3. Therefore, the appellant submits that, explanation to Rule 2(l) of CCR, 2004 clarifying the term 'sales promotion' to include sale on commission basis and is retrospective in nature. 3.4. Further, the appellant placed their reliance on the Board Cir....

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....ned order. 6. Heard both sides and perused the appeal documents. 7. We observe that Cenvat Credit availed by the Appellant for the period from April 2012 to June 2016, was denied on the allegation that the activities carried out by commission agents, being post removal activity, do not fall within the ambit of Rule 2(l) of the Cenvat Credit Rules, 2004. 7.1. We observe that Cenvat Credit Rules have been amended to include 'Sales Commission' as 'input service'. It has also clarified that sales commission has been included in sales promotion under Rule 2(l) of the Credit Rules. The explanation inserted is reproduced herein below for ease of reference - "Explanation - For the purpose of this clause, sales promotion includes s....

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.... on the public generally, and where to confer such benefit appears to have been the object of the legislature, then the presumption would be that such a legislation, giving it a purposive construction, would warrant it to be given a retrospective effect. In Commissioner of Income Tax v. Archean Granite Private Limited [(2020) 117 taxmann.com 977 (Madras)] amendment made to Section 40(a)(ia) of the Finance Act, 2010 inserting proviso therein was held to be retrospective with effect from the assessment year 2005-06 and the Court followed the decision in the case of Commissioner of Income Tax v. Calcutta Export Company [(2018) 93 taxmann.com 51]. Therefore, we find that the approach to the issue in the manner done by the Learned Tribunal canno....