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2020 (8) TMI 137 - CESTAT ALLAHABADCENVAT Credit - input services - tour packages provided to dealers - nexus with sales promotion or not - HELD THAT:- Hon’ble Gujarat High Court in the case of GUJARAT STATE FERTILIZERS AND CHEMICALS LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX, SURAT-II [2016 (1) TMI 1063 - GUJARAT HIGH COURT] had examined the particular agreement and it was clear that as per the said agreement the agents were appointed as stockiest - in the present case the tour packages were arranged for dealers. Further, this Tribunal in the case of SIMBHAOLI SUGAR LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MEERUT-II [2018 (4) TMI 1657 - CESTAT ALLAHABAD] have held that if commission is paid to sales commission agent for effecting sale of goods manufactured by the assessee then service tax paid on such commission would be available as input service credit to the manufacturer. Thus, it was possible for the appellant to pay in cash expenses for tour. Instead they have provided them tour packages. Therefore, the said tour packages can be considered as dealer’s commission. Therefore, Cenvat credit of service tax paid on tour packages are admissible as Cenvat credit in the present case. Appeal allowed - decided in favor of appellant.
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