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2017 (1) TMI 924 - CESTAT BANGALORECENVAT credit - input services - sales commission - denial on the ground that the activity of sales commission paid to the agents was no way related to the activity of manufacturing the final product in terms of Section 2(f) of the Central Excise Act - Held that: - the sales commission is directly attributable to sales of the products. Any activity which amounts to sale of the products is deemed to be sales promotion activity in the normal trade parlance. The commission is paid on sales of the products/services with an intention to boost the sale of the company. In view of the same, the sales commission has a direct nexus with the sales which in turn is related to the manufacture of the products. It is to be understood that there need not be manufacture unless there is sale of product. Hence, the commission paid on sales becomes part of sales promotion resulting in increased manufacturing activity - reliance placed on the decision of the the case of Ambika Overseas [2011 (7) TMI 980 - PUNJAB & HARYANA HIGH COURT], where it was clearly held that the sale and manufacture are directly interrelated and the commission paid on sales needs to be taken as services related to sales promotion. CENVAT credit allowed - appeal allowed - decided in favor of appellant.
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