Commissioner of Central Goods & Service Tax, Alwar Versus Shre Nath Life Science P Ltd
Central Excise
2018 (6) TMI 6 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 29-5-2018
Excise Appeal No. 50982 of 2018 SM – Final Order No. 52064 /2018-(SM)
Central Excise
Hon'ble Ms. Archana Wadhwa, Member ( Judicial )
Shri H C Saini, AR for the Appellants
None for the Respondent
ORDER
Per Ms. Archana Wadhwa
Being aggrieved by the order passed by the Commissioner (Appeals), Revenue has filed the present appeals. Nobody appeared for the respondent. Accordingly, I heard learned AR appearing for the Revenue and have gone through the impugned order.
2. The sole issue required to be decided in the present appeal is as to whether the services of 'Sales Commission Agents' can be held to be cenvatable and the Service Tax paid on the same is available as a credit to the assessee.
3. The appellate authority has held in favour of the respondent by observing as under:
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of dutiable goods on commission basis.” From this clarification itself it is understood that if a commission agent is paid commission on account of sales of goods, his services qualify to be input service and cenvat credit of service tax paid on such services is admissible to the recipient of service. I find that the issue stand settled after the said clarification itself. I find that the Hon'ble Tribunal in the case of CCE, Jallandhar vs. Ambika Overseas reported in [2010 (20) STR 514 (Tri-Del)] held that the subject activity of Commission Agent is a service used in relation to sales promotion and is covered under the definition of input services. This order of the Hon'ble Tribunal was affirmed by the Hon'ble High Court of Punjab and Haryana as reported in 2012 (25) STR 348 (P&H). Regarding the judgment of Hon'ble High Court of Gujarat in the case of Cadila Healthcare Ltd. reported in [2013 (30) STR 3 (Guj)] relied upon by the adjudicating authority, I find that in that case the Hon'b
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High Courts – Explanation inserted in Rule 2(l) ibid is declaratory in nature, hence, effective retrospectively. Since at this point of time, statutory provisions / grounds are available to deal with the issue in the form of clarification and Notification as discussed above, conclusion can be drawn beyond the findings of the Hon'ble Gujarat High Court, that the services of commission agent for sales of goods can also be considered as services used in relation to sales promotion that too when the above said notification clearly provides that „…sales promotion includes services by way of sale of dutiable goods on commission basis.” In view of the findings narrated in foregoing para, I am of the view that the cenvat credit of service tax paid on the amount of commission paid to the commission agents is available to the appellants. I do not find force in the plea of the Revenue that the subject explanation would have only prospective effect because, as recorded in the findings abo
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