TaxTMI 
TaxTMI 
2026 (10) TMI 1073
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....f a commission agent's service towards procurement of order, and the same was not in the nature of promotion of the business, a Show Cause Notice came to be issued on 31.08.2016 demanding the CENVAT Credit reversal for the period 2012-13. After due process, the authorities have confirmed the demand. Therefore, the appellant is before the Tribunal. 2. The Learned Counsel, appearing on behalf of the appellant, submits that this issue is squarely covered by the decision of the Hon'ble Calcutta High Court by the Principal Commissioner of Central Excise, Calcutta IV, v. Himadri Specialty Chemicals Ltd, [2022, (66) GSTL (264) Cal]. He submits that the earlier order of this Bench stands decision of the affirmed by this Calcutta High Court. ....
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....-CX., dated 29-4-2011 at point No. 5 [2011 (267) E.L.T. (T19)] has clarified that credit of service tax paid on sales commission services (Business auxiliary services) used in relation to manufacture/sale of finished goods is admissible under Cenvat Credit Rules, 2004. However, there are conflicting judgments of Hon'ble High Courts in this regard. Hon'ble High Court of Gujarat in case of Cadila Health Care [2013 (30) S.T.R. 3] has disallowed the said Cenvat credit whereas Hon'ble Tribunal in case of Birla Corporation Ltd. [2014 (35) S.T.R. 97] followed the judgment of Hon'ble High Court of Bombay and allowed the credit. Board may be requested by the conference to issue necessary clarification on the subject to avoid further litigation and t....
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....he judgment and the circular is not as large as is perceived. Both the Board circular and case laws on the subject allow credit of input service, when the activity of the sales commission agent involves an element of sales promotion. 11. As could be seen from the above clarification, the decision in Cadila Health Care was also taken note of by the department and the position stood clarified that sales promotion would include services by way of sale of goods on commission basis. As pointed out by the Hon'ble Supreme Court in Commissioner of Income Tax v. Vatika Township Private Limited [(2015) 1 SCC 1] that if a legislation confers the benefit on some persons but without inflicting the corresponding detriment on some other person or....