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2012 (7) TMI 820 - AT - Central ExciseCENVAT Credit - Commission agent - whether the services of commission agents for procuring sales orders received by the appellant is an input service or not for the purpose of availing Cenvat credit - Held that:- Though, in the order-in-original dated 27-2-2009 the Additional Commissioner has given a finding that the commission and brokerage paid to the commission agents and brokers was the payment made for the service provided after the removal of cement from the place of removal and as such the said service does not fall within the ‘input service’ as defined under Rule 2(l) of the Cenvat Credit Rules, we find that no basis for this finding has been given. The services of commission agents/brokers are availed for procuring the sales orders against which the manufacturer makes direct supplies to the customers and the commission agents/brokers get the commission. These services, of commission agents/brokers are as in the nature of sales promotion, an activity specifically covered in the inclusive portion in the definition of input service. This service, in our view, would also be covered by the term “activity related to business” which was also covered by the definition of ‘input service’ during the period of dispute. We, therefore, hold that the services, in question, are covered by the definition of ‘input service’ - Following decision of Commissioner v. Abhishek Industries Ltd. [2007 (10) TMI 583 - CESTAT NEW DELHI], CCE, Ludhiana v. Rightway Fabrics Pvt. Ltd. [2012 (6) TMI 21 - CESTAT, NEW DELHI] and Lanco Industries Ltd. v. CCE, Tirupathi [2009 (7) TMI 125 - CESTAT, BANGALORE] - Decided in favour of assessee.
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