2018 (7) TMI 767 – CESTAT MUMBAI – TMI – CENVAT Credit – input services – services provided by the over-seas commission agent including the services of sales promotion by the appellant – Held that:- From the agreement produced by the appellant which has been made between M/s. MAZER-the foreign commission agents and the appellant clearly placed the responsibility to undertake activities to promote the sale and other business objective of the company on the said commission agents – It is wide evident that the services provided by M/s MASER are inclusive of services of sales promotion.
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Since the activities undertaken by over-seas commission agents are inclusive of activities of sales promotion, admissibility of credit cannot be disputed – reliance placed in the case of Monarch Catalyst Pvt. Ltd. v. CCE [2016 (2) TMI 64 – CESTAT MUMBAI], where it was held that the appellant is entitled to avail cenvat credit in respect of commission paid to the commission agent based abroad.
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Ambika Overseas – 2012 (25) STR 3348 (P&H). (b) Commissioner of Central Excise & ST v. Plastiblends India Ltd. (Unit-I) – 2017 (52) STR 370 (T) (c) Stanley Seating v. CCE – 2017 (3) GSTL 137 (T) (d) Monarch Catalyst Pvt. Ltd. v. CCE – 2016 (41) STR 904 (Tri.-Mum) (e) Bhuruka Gases Ltd. v. CCE C & ST – 2015 (37) STR 818 (Tri. – Bang) 4.1 She also relied upon the Circular of CBEC No. 943/4/2011- CX dated 29.04.2011 wherein it has been clarified that CENVAT credit in respect of such services shall be admissible. She also submitted that in 2016 amendments were made in Rule 2(l) of Cenvat Credit Rules, 2004 by insertion of explanation to effect for the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis. This explanation has been held by various benches of this Tribunal in retrospective in nature. (a) CCE & ST v. Dwarikesh Sugar Industries Ltd. – 2017 (50) STR 37 (Tri. – All). (b) Essar Steel India Ltd. v. CCE &
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tive of the company on the said commission agents. 5. Description of Processes (a) DURALINE will supply said products to MASER OR end customers in the TERRITORY on receiving specific orders subject to availability of stocks or under specifically agreed lead times for dispatches. (b) MASER shall be further entitled to sell the said products in the markets in the said TERRITORY and tenders in the said TERRITORY only. (c) It will be the responsibility of MASER to obtain license for the import of the goods in its country and to pay all the customs duties, import duties and other clearance charges for clearing the goods from the ship and carrying them to its factory or go-down unless agreed otherwise under different INCOTERMS (2000). (d) Similarly it will be the responsibility of DURALINE to take out an export license if required by the law of its country and to pay all charges for transport and shipment of the said goods unless otherwise agreed by both the parties. (e) MASER will be respon
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mpliance with all applicable laws and regulations and MASER shall not make any material omission or misrepresentation in the sale of said products . Under this Agreement Duraline is considered to be the owners of design/specifications of the said products and that it takes full responsibility for compliance of specifications thereof. (g) MASER undertakes to market the products supplied to it by DURALINE in the packages / containers in which they are received. MASER shall not alter the labels of the containers or packages in any way and shall not defact, remove, obliterate or in any manner modify or alter the trade marks, grade indications and other matters appearing thereon. (h) MASER shall promptly forward to DURALINE any complaints, letters, demands or other form of communication received from any consumers solicited by MASER. MASER shall also promptly forward to DURALINE any complaints, letters, demands or other form of communication received from any Governmental agency in regard t
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commission based on price realization. 8. Term Of Agreement: Subject to the provisions of Section 14 below, the term of this Agreement shall be continuous as from 1st April, 2012 onwards until 31st December, 2013 and renewable at mutual consent of DURALINE & MASER. 9. Relationship Of The Parties: MASER will act as an Distributor of DURALINE with a right to market & sell the said products imported by it, in the markets in the said TERRITORY only. None of the employees of MASER shall be considered employees of DURALINE. Maser shall not bind or make commitments for DURALINE in any manner whatsoever unless authorized to do so by DURALINE in writing. 10. Conflicting Activities: During the term of this Agreement, MASER will not directly or indirectly enter into any activity or business arrangement, which conflicts with its obligations towards DURALINE. MASER and/or any of its associates will not promote or sell any other similar product of any other company, which is directly competi
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by providing the other party with 60 days written notice of the termination date: I. If the other party becomes the subject of a voluntary or involuntary reorganization, or similar law, makes an agreement for the benefit of creditors, consents to the appointment of a receiver of its property, becomes insolvent or bankrupt, or any equivalent event occurs under the laws of the jurisdiction where it is incorporated or carries on its business; or II. Upon receiving notice that 50% or more of the stock or assets of the other party has been acquired by an unaffiliated third party; or III. If the other party has breached any material provision of this Agreement; provided that the non-breaching party has given the breaching party written notice of termination for breach and the breaching party has not cured the breach within thirty (30) days of receipt of notice; or b) DURALINE shall have the right to terminate this Agreement on sixty (60) days prior written notice to MASER. I. If either party
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