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2023 (12) TMI 6 - SCH - Central ExciseInput Tax Credit - commission paid to the foreign agent - challenge to the decision passed by the Division Bench of the High Court of Gujarat in Tax Appeal Nos.353/2010 and 204/2011 [2013 (1) TMI 304 - GUJARAT HIGH COURT] - HELD THAT:- The High Court found that the Tribunal had reversed the findings of the adjudicating authority without giving any reason in support thereof and had merely sought to compare the payments made for services rendered by a foreign agent as analogues to a clearing and forwarding agent who actually effects sales. It was contended that the sales promotion is a terms of art and an agent can be appointed only for that purpose and therefore, the nature of the agreement between the assessee and the agent; the invoices indicating the payments made to the agent would all be relevant factors to be considered while arriving at a finding as to whether the appellant-assessee is entitled to claim input tax credit - there are substance in the contention of learned senior counsel appearing for the appellant particularly having regard to the doubt expressed by the High Court with regard to the manner in which the CESTAT had reversed what had been stated by adjudicating authority. The High Court ought to have then remanded the matter(s) to CESTAT for a fresh consideration by giving an opportunity to the appellant to place on record the necessary documents including the agreement entered into by the assessee with the concerned agents, the relevant invoices etc. - matters are remanded to CESTAT for a fresh consideration.
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