TMI Blog2011 (11) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 1-11-2011 - Ms. Archana Wadhwa, J. Appearance: Shri Kapil Vaish, Chartered Accountant for the Appellants Shri S.K. Bhaskar, DR for the Respondent Per Archna Wadhwa: After dispensing with the condition of pre-deposit of duty of Rs.4,09,940/- and penalty of identical amount, I proceed to decide the appeal itself inasmuch as the disputed issue stands decided in favour of the appellants by the precedent decision of the Tribunal. 2. After hearing both sides, I find that the appellants are engaged in the manufacture of sugar. For sale of their final product, they availed the services of the commission agent, and are paying Service Tax on the said services under the category of Business Auxiliary services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such activities have direct nexus with the business activities of the assessee and as such have to be treated as input services. 4. I find from the impugned order of the Commissioner (Appeals) that it is accepted fact that there are different orders of the Tribunal adopting two different views. He has accepted that the Tribunal's decision in the case of CCE, Raipur vs. Bhilai Auxiliary Industries as reported in [2009 (14) STR 536 (Tri-Delhi)] holds commission agent services as eligible input services for the purpose of modvat, though he has preferred to rely upon the Single Member Bench decision in the case of Chemplast Sanmar Ltd. vs. CCE, Salem as reported in [2010 (250) ELT 46 (Tri-Chennai)] laying to the contrary. 5. I f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is admissible. As such, I note that there are catena of judgment laying down that the Service Tax paid on the commission agent services is available as modvat credit. As such, I hold that the impugned orders denying such credit are not sustainable. 6. Apart from the decisions as discussed above, I also take note of a recent Circular No. 943/4/2011-CX dated 29.4.2011issued by the Board clarifying that even after the deletion of expression 'activities related to business' from the definition of input services, the credit of Service Tax paid on the sales promotion activities and on the services of sales of dutiable goods on commission basis would be admissible as credit. As such, it is the contention of the learned advocate that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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