TMI Blog2019 (2) TMI 1485X X X X Extracts X X X X X X X X Extracts X X X X ..... as been settled in favour of the appellant in various decisions wherein it has been consistently held that sales commission falls under the definition of ‘input service’. Appeal allowed - decided in favor of appellant. - E/21375/2018-SM, E/21376/2018-SM, E/21377/2018-SM, E/21378/2018-SM, E/21381/2018-SM - Final Order No. 20201-20205/2019 - Dated:- 25-2-2019 - SHRI S. S. GARG, JUDICIAL MEMBER Ms. Syed Peeran, Advocate For the Appellant Dr. J. Harish, Jt. Commissioner (AR) For the Respondent ORDER Per : S.S GARG Appellants have filed these five appeals against the common impugned order dated 24.5.2018 passed by the Commissioner (A) whereby the Commissioner (A) has denied the CENVAT credit and upheld the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goetze India Limited (FMGIL) are two group companies/sister units functioning in the common premises at Yelahanka with their Head Office located at New Delhi. These units have separate Pan number but are functioning with common human resources and are located in the premises of FMGIL at Yelahanka. Both the units are considered as group companies (sister units). The sales/marketing of products of the appellants are done by FMGIL on behalf of the appellant as per the Marketing Agency Agreement between the two units. For the said services rendered, FMGIL raises invoices charging Sole Selling Commission under the category of Business Auxiliary Service along with service tax from their service recipient i.e., the appellant. During the audit, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t; while the appellant undertake the sale of the products. He further submitted that the term input service as defined under Rule 2(l) of CCR explicitly includes the activity of sales promotion. It is his further submission that Explanation to Rule 2(l) of CCR inserted by Notification No.2/2016-CE dated 3.2.2016 holding that sales promotion includes services by way of sale of dutiable goods on commission basis. This amendment is declaratory in nature and hence is applicable retrospectively. For this submission, he relied upon the following decisions: Essar Steels India Ltd. vs. CCE: 2016 (335) ELT 660 (Tri.-Ahmd.) Stanley Seating vs. CCE, Bangalroe: 2017 (3) GSTL 137 (Tri.-Bang.) CCE vs. BSL Ltd.: 2017-TIOL-3897-CE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11Ac is not sustainable. 5. On the other hand, the learned AR defended the impugned order and submitted that the Sole Selling Agent services provided by FMGIL to the appellant does not qualify as input service as defined under Rule 2(l) of CCR as the sales commission paid is in relation to sale of product and do not have any connection with the manufacture of final products by the appellants. He further submitted that FMGIL do not undertake sales promotion and essential functions performed by them are sales only and there is no material on record to show that FMGIL is substantially doing any sales production. 6. After considering the submissions of both the parties and perusal of the material on record and the various decisions rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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