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2017 (1) TMI 972 - AT - Central ExciseRefund claim - Credit availed on sales commission was reversed, now refund sought for - denial on the ground that the service tax paid on commission is beyond the place of removal - 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 - It is to be understood that there need not be manufacture unless there is sale of product. To increase the manufacturing activity encouragement is being given for increased sales. Hence, the commission paid on sales becomes part of sales promotion resulting in increased manufacturing activity. Reliance also placed in the case of Ambika Overseas [2011 (7) TMI 980 - PUNJAB & HARYANA HIGH COURT], where it was 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. Refund allowed - appeal allowed - decided in favor of assessee.
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