Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 390 - AT - Central ExciseCENVAT Credit - input service or not - commission paid to an overseas agent - reverse charge mechanism - HELD THAT:- Since there were conflicting judgments of various High Courts on the admissibility of CENVAT credit on the commission paid, a Notification No 2/2016-ST dated 03/02/2016 was issued inserting an explanation allowing CENVAT credit of such commission. In the matter of M/S ESSAR STEEL INDIA LTD. VERSUS COMMISSIONER OF C. EX. & SERVICE TAX, SURAT-I [2016 (4) TMI 232 - CESTAT AHMEDABAD], a Division Bench of the Tribunal has held that this explanation has retrospective effect and applies even to cases prior to the insertion of this explanation. Relying on this order of the Tribunal, the Assistant Commissioner has dropped the show-cause notice and allowed CENVAT credit to the appellant. The Commissioner (Appeals) has not given any reason as to why the order of the Tribunal Ahmedabad in the case of Essar Steels does not apply to this case. In fact, he did not discuss the order of the Essar steels India Ltd at all. In other words while the Assistant Commissioner has followed the ratio of the law laid down in the case of Essar Steel by a Division Bench of the Tribunal, Learned Commissioner (Appeals) has simply ignored it and gave his own reasoning. The ratio of the order of the Tribunal is binding on all the lower authorities. Appeal allowed - decided in favor of appellant.
|