2018 (9) TMI 1420 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – services of Commission Agents to develop its market and promote sales – Held that:- The Tribunal has been consistently allowing the Cenvat Credit under similar circumstances – In the appellant’s own case M/S ULTRATECH CEMENT LTD. AND M/S JAQUAR AND COMPANY PVT LTD. VERSUS CCE & ST, ALWAR [2017 (12) TMI 891 – CESTAT NEW DELHI] Cenvat Credit has been allowed by holding that CBEC vide Circular No. 943/4/2011-CX. Dated 29/04/2011 has clarified 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. – Appeal No. E/51541/2018-SMC – Final Order No._52942/2018 – Dated:- 12-9-2018 – Mr. V. Padmanabhan, Member (Technical) For the Appellant : Sh. P. Juneja, DR For the Respondent : Sh. Kartikey Kulshreshtha, Advocate ORDER Per: V. Padmanabhan 1. The present appeal is filed by Revenue against the Order-in-Appeal
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er, subsequent to the said decision, CBEC has issued a Circular dated 29/04/2011 clarifying the Cenvat Credit as admissible on the services of the sale of goods on commission basis. The said Circular was also endorsed by the Central Excise vide Notification No. 2/2016-CE (NT) dated 03/02/2016. Following the legal developments on the subject, it is also seen that the Tribunal has been consistently allowing the Cenvat Credit under similar circumstances. In the appellant s own case reported in 2017 (12) TMI 891-CESTAT, New Delhi Cenvat Credit has been allowed with the following observations by the Tribunal. 5. We note that the similar dispute came before the Tribunal in case of Mangalam Cement Ltd. & Ors. The Tribunal vide Final Order Nos.56683-56885 dated 28.08.2017 examined the issue along with the decisions of the Hon ble Gujarat High Court and Punjab & Haryana High Court. The Tribunal observed as below:- 4. With regard to availment of Cenvat credit on the commission paid for s
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he Hon ble Gujarat High Court in the case of Cadila Healthcare Ltd. (supra) was unable to concur with the contrary view taken by the Hon ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Ludhiana v. Ambika Overseas (supra). The Hon ble Gujarat High Court held that this issue is concerned, 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(l) 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 E/54289/2015 E/52700/2016 5 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 H
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