2026 (8) TMI 1798

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....er and remanded the matter to him for verification of facts to see if the service tax paid on sales commission on which the appellant had taken Cenvat credit pertained to commission paid to overseas agents or otherwise. 2. I have heard Shri R. Santhanam, learned counsel for the appellant and Shri Anand Narayan, learned authorized representative for Revenue and perused the records. 3. The undisputed legal position is that the definition of input services under Rule 3 of the Cenvat Credit Rules, 2004 [CCR] includes commission paid to sales agent. However, a show cause notice dated 03.05.2016 [SCN] was issued to the appellant based on the observations of audit party seeking to deny service tax on the commission paid to the selling agent.....

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....ate the Cenvat credit taken of the service tax paid by the appellant to commission agents in India and those of overseas agents. 7. Learned counsel for the appellant submits that the Commissioner (Appeals) has erred in remanding the matter to the Joint Commissioner with the direction to bifurcate the Cenvat credit taken on the commission paid to agents within India and overseas agents when the SCN itself has recorded the appellant's contention that no Cenvat credit whatsoever was taken on the service tax paid on commission paid to overseas agents. He, therefore, prays that the impugned order may be set aside and the appeal may be allowed. This would effectively restore the order of the Joint Commissioner dropping the proceedings in pursu....

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....d that once the SCN is issued on some allegations and charges along with the relevant calculations, it is not open to the adjudicating authority or to the Commissioner (Appeals) to go beyond the scope of the SCN. The SCN does not indicate that Cenvat credit has been taken on service tax paid to overseas commission agents services. The entire demand is on the service tax paid on total commission during the period 2011-2012 to 2014-2015. It has been specifically recorded in paragraph 9.4 of the SCN that the appellant had submitted that no Cenvat credit was taken on the service tax paid on the commission paid to overseas agents. Thus, there is no evidence that any commission, such as, Cenvat credit has been availed on the service tax paid on c....