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2017 (3) TMI 928 - AT - Central ExciseInput credit - Drain Trap - Steel Furniture - Outward freight - sales commission - Held that: - the credit with respect to drain trap ₹ 5,655/- and the credit of ₹ 28,248/- with respect to steel furniture, admittedly used in the factory premises, particularly in the change room etc. are fully allowable as the appellant cannot manufacture drugs without complying with the ‘good manufacturing practices’ under the Drugs and Cosmetics Rules. Outward freight - Held that: - ‘Goods Transport Agency service’ for transportation of final products from place of removal is an eligible input service as the expression – “activities relating to business”, covers transportation upto customer’s place and the word “relating” widens scope. Thus, credit is not deniable relying on coverage of outward transportation up to place of removal in inclusive clause. Sales commission - Held that: - Commission has been paid to service providers for procuring orders, which is essential for effecting sale and/or clearances of the manufactured goods. Such expenditure forms part of the cost of manufacturing on which admittedly Excise duty is paid - also sales promotion expenses is specifically includable u/r 2(l)(ii) of CCR, 2004. Accordingly, the credit for the same is fully allowable. Appeal allowed - decided in favor of appellant.
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