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2023 (5) TMI 297 - AT - Central ExciseCENVAT Credit - input services - sales incentives paid by them are in the nature of sales commission or not - Consulting Engineer service - Telecommunication service - Stockbroker service - Company Secretary/Chartered Accountant Services - Insurance Services - Courier service - denial on the ground of nexus with output - Annual Maintenance of Xerox machines - Car rentals - Renting of Immovable property - Tour operating services - Credit denied for not adducing evidence - Renting of office building - Billing in the name of units/service provided to other units - Credit taken twice - Service Tax Registration No. not mentioned in the invoice - Bills in the name of other companies - Without Specified documents - Without documents. Sales incentives paid by them are in the nature of sales commission or not - HELD THAT:- Whether the services rendered by Veljan are in the nature of ‘Sales Promotion’ as claimed by the Appellant or are in the nature of mere ‘sales’ on which commission was paid, as claimed by the Revenue, under both the cases the Cenvat Credit cannot be denied to the Appellant - Order procurement itself means that they are canvassing and promoting the products of the Appellant. It is seen that the Adjudicating Authority has relied on the case law of COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD – II VERSUS M/S CADILA HEALTH CARE LTD. [2013 (1) TMI 304 - GUJARAT HIGH COURT] - Adjudicating Authority has taken the view that since the incentive is paid @ 10% of the total sales, this incentive is paid only ‘Sales Commission’ ignoring the fact that without canvassing and procuring the order the sales could not have taken place. Therefore the decision of Cadila Healthcare Ltd actually supports the case of the Appellant. The subsequent clarification given under Circular No. 943/4/2011-CX dt.29.04.2011 and addition of Explanation to the definition of BAS vide Notification No. 02/2016 dt.03.02.2016 shows the legislative intent that the assessee should not be deprived of the Cenvat Credit even when mere sales commission is paid where sales promotion may not be involved. The amended notification, in effect means that the Cenvat Credit would be eligible not only for the sales promotion services per se but also for commission paid on pure sales - In any view of the matter as to whether the services rendered by Veljan are in the nature of ‘Sales Promotion’ as claimed by the Appellant or are in the nature of mere ‘sales’ on which commission was paid, as claimed by the Revenue, under both the cases the Cenvat Credit cannot be denied to the Appellant. CENVAT credit denied on account of credit taken for various services like consulting engineer, stock broker, etc. - HELD THAT:- The factual details are required to be verified by the Adjudicating Authority to come to a conclusion as to whether the Appellant is eligible for CENVAT credit or not. This exercise cannot be taken up at the Tribunal level - matter remanded to the Adjudicating Authority for confirmation of such demands - The Adjudicating Authority may pass an Order after due verification of all documentary evidence produced before him for the present appellant. Since the issue pertains to 2006-08, the Adjudicating Authority is directed to pass a suitable order within Four months from the date of receipt of this order. Cenvat Credit taken on Incentives paid, credit allowed, Appeal allowed. Cenvat Credit in respect of various services, Matter remanded to the Adjudicating Authority. Appeal disposed off.
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