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TMI Blog2016 (8) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... by Commissioner disallowed cenvat credit to the tune of Rs. 1,14,99,823/- (Rupees One Crore Fourteen Lakhs Ninety Nine Thousand Eight Hundred and Twenty Three only) and held that it is recoverable along with interest and he also imposed equivalent penalty under Section 11AC of Central Excise Act read with Rule 15 of the Cenvat Credit Rules, 2004. 2. The appellants viz. M/s. Liebherr Machine Tools India Pvt. Ltd. are before this Tribunal against the above order of Commissioner with the request to set aside the said order with consequential relief. 2.1. The appellants mainly argue that the input services in question are actually in the category of Sales Promotion relating to their business of manufacturing the said machinery viz. gear hobb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. CCE, Bangalore - I 3. Revenue represented by learned AR, Shri Mohd Yusuf argues that the input services in question availed by the appellants are more in the nature of Commission Agent for the sales and cannot be called as services for sales promotion only. He has referred to the Hon'ble Gujarat High Court decision in the case of CCE, Ahmedabad-II Vs. Cadila Healthcare Ltd. [2013 (30) S.T.R 3 (Guj.)] saying that commission paid to the agents for the sales cannot be part of the definition of input services. He says party viz. M/s. Francis Klein & Co. Pvt. Ltd., with whom appellants have entered into an agreement are actually the agents who are concerned with sales rather than sales promotion. 4. The facts on record and the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question to be considered is whether in this case the agents have undertaken sales promotion activity or not. If the answer is yes, the credit would be admissible and otherwise no. The learned CA relied upon the letter written by one of the two agents namely Agnes Bruno Ltd. dated February 15th 2007. In this letter, Agnes Bruno Ltd. had informed the appellant that they lend a helping hand to the Business Houses to sell their products. They undertake canvassing of business not only to retain the existing clientele of the company but to find new customers as well. They also stated that the appellant could take the best advantage of their network available through out the country to sell their bulk products viz., Liquid Gases on commission b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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