2018 (6) TMI 860 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – Sales Commission – Held that:- Identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [2018 (4) TMI 1163 – CESTAT NEW DELHI], where it was held that CENVAT credit is admissible on the services of the sale of the dutiable goods on commission basis – credit allowed – appeal dismissed – decided against Revenue. – Excise COD Application No. 50342 – 50343 of 2018, Excise Appeal No. 50835 – 50836 of 2018 – A/51944-51945/2018-EX[DB], MISC ORDER No. 50305-50306/2018 – Dated:- 11-5-2018 – Mr. Justice (Dr.) Satish Chandra, President And Mr. Bijay Kumar, Member (Technical) Shri M R Sharma. Shri R K Mishra, AR for the Appellants Shri Ankit Danial, Advocate for the Respondent No. 1, None for Respondent No. 2 Per: Justice (Dr.) Satish Chandra: Delay in filing the present appeals is condoned for the reasons mentioned in the application.
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it appears that identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [ Final Order No. 51412- 51426/2018 dated 16.4.2018] where Tribunal relied on the earlier decision in the case of National Engineering Industries Ltd. vs. CCE & ST, Jaipur I Final Order No. 57218/2017 dated 10.10.2017 where it was observed that : After hearing both the parties, we note that identical issue has come up before the Tribunal in the case of M/s Mangalam Cement Ltd. vs. CCE, Udaipur. The Tribunal vide final order No. 56683-56685/2017 dt. 28.08.2017 held as under:- 4. With regard to availment of Cenvat credit on the commission paid for sale promotion activities, the CBEC vide Circular No. 943/4/2011-CX dt. 29.04.2011 has clarified that Cenvat credit is admissible on the services of the sale of the dutiable goods on commission basis. The said circular was endorsed by the Central Government vide Notification
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cerned, the question is answered in favour of the Revenue and against the assessee. In this background, legislature explained the meaning of the sales promotion by inserting Explanation in Rule 2(1) of Rules, 2004 and declared that sales promotion includes services by way of sale of dutiable goods on commission basis. In other way, Explanation to Rule 2(l) of Rules says in clear terms that there is no bar on availment of the Cenvat credit on sales promotion service by way of sale of dutiable goods on commission basis. Further, by inserting the Explanation in the Rule 2(l), it has confirmed the Board Circular and resolved the different views of the High Courts. Taking into circumstances under which the Explanation was inserted in Rule 2(l) of Rules, 2004 and consequences of the Explanation to extend the benefit to the assessee as per Board Circular, we hold that the Explanation inserted 4 in Rule 2(l) of Rules, 2004 by Notification No. 2/2016-CX (N.T.) (supra) should be declaratory in n
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