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2016 (8) TMI 434 - AT - Central ExciseCenvat credit - entitlement - Whether the Commission Agent Services would be classifiable as Business Auxiliary Service as per Department or Sales Promotion service as per appellant - Held that:- the services in question cannot be called commission agency services for sales. When all the activities of M/s. Francis Klein & Co. Pvt. Ltd., are considered, it is clear that they are engaged in promotion of sales for the products manufactured by the appellants. Here the agreement says that appellants would provide them complete catalogue instruction books, circulars for promoting sales. It also says that the appellants will execute orders promptly placed by said Francis Klein & Co. Pvt. Ltd. We cannot say that said M/s. Francis Klein & Co. Pvt. Ltd. are only primarily concerned with sales not with the sales promotion. It is to be noted that without any sales promotion there cannot be any final sale. Hence, the input services in question are in the category of Sales Promotion, which would be covered by definition of input services given in Rule 2(l) of Cenvat Credit Rules 2004. Therefore the appellants would be entitled to the cenvat credit for the service tax paid for these input services in question. - Decided in favour of appellant
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