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2019 (7) TMI 445 - AT - Central ExciseCENVAT Credit - input services - commission paid to agents working abroad for sale of their goods - denial of credit on the ground of nexus - HELD THAT:- The distributor/commission agent appointed by the appellant outside India has to make every effort to promote the products manufactured by the appellant. It is thus not merely an activity of sale of finished products - the Board vide Circular No. 943/4/2011-CX dated 29.04.2011 has clarified that the remuneration paid to sales commission agents is linked with actual sale and it involves an element of sales promotion. The decision of the Hon’ble Gujarat High Court in the case of COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD – II VERSUS M/S CADILA HEALTH CARE LTD. [2013 (1) TMI 304 - GUJARAT HIGH COURT] , therefore, has no application in the present facts of the case as it was held in the case that though the business activities mentioned in the definition are not exhaustive, the service rendered by the commission agents not being analogous to the activities mentioned in the definition, would not fall within the ambit of the expression "activities relating to business". The Tribunal in the case of CGST, C & CE, ALWAR VERSUS M/S KRISHI ICON [2018 (7) TMI 97 - CESTAT NEW DELHI] had occasion to analyse the application of the explanation added with effect from 03.02.2016 and had observed that it was merely clarificatory in nature and that commission paid for sales commission activities prior to 03.02.2016 is also eligible. The denial of credit is unjustified - credit allowed - appeal allowed - decided in favor of appellant.
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