TMI Blog2012 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Kapil Vaish for the Appellant. S.K. Bhaskar for the Respondent. ORDER 1. 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. They availed the Cenvat credit of Service tax so paid by them on the services of commission agent. Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 v. Bhilai Auxiliary Industries [2009] 21 STT 474 (New Delhi - CESTAT) 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. v. CCE LTU [2010] 29 STT 289 (Chennai - CESTAT) laying to the contrary. 5. I find that Tribunal's decision in the case of Bhilai Auxiliary Industries (supra) stands passed before the decision in the case of Chemplas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-C.X., dated 29-4-2011 issued 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 even after the activities related to business, stand deleted from the definition of inputs c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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