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2016 (8) TMI 434 - CESTAT BANGALORE

2016 (8) TMI 434 - CESTAT BANGALORE - 2016 (44) S.T.R. 633 (Tri. - Bang.) - Cenvat credit - entitlement - Whether the Commission Agent Services would be classifiable as Business Auxiliary Service as per Department or Sales Promotion service as per appellant - Held that:- the services in question cannot be called commission agency services for sales. When all the activities of M/s. Francis Klein & Co. Pvt. Ltd., are considered, it is clear that they are engaged in promotion of sales for the produ .....

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services in question are in the category of Sales Promotion, which would be covered by definition of input services given in Rule 2(l) of Cenvat Credit Rules 2004. Therefore the appellants would be entitled to the cenvat credit for the service tax paid for these input services in question. - Decided in favour of appellant - ST/74/2011-DB - Final Order No. 20272 / 2016 - Dated:- 12-2-2016 - SMT ARCHANA WADHWA, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Petitioner : Smt Rukma .....

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s 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 t .....

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they have signed with M/s. Francis Klein & Co. Pvt. Ltd.; it has the Clause 2 saying they will pay commission of 6.5% to M/s. Francis Klein & Co. Pvt. Ltd., and further she refers to Clause 6(i) that the appellant would provide Francis Klein with complete catalogues, brochure books, circular for promoting the sale of their products. 2.1.1. The learned advocate also refers to Hon ble Punjab & Haryana High Court s decision in the case of Commissioner of Central Excise, Ludhiana Vs. Amb .....

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Order Nos. 20176-20183/2014 dated 31.01.2014 in the case of Bhuruka Gases Ltd. 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 .....

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Co. Pvt. Ltd., with whom the appellants entered into sales promotion agreement have been considered. The services in question cannot be called commission agency services for sales. When we examine and consider all the activities of M/s. Francis Klein & Co. Pvt. Ltd., it is clear that they are engaged in promotion of sales for the products manufactured by the appellants. Here the agreement says that appellants would provide them complete catalogue instruction books, circulars for promoting s .....

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es but it does not mean that they are not doing any sales promotion for the products being manufactured by the appellants. The decision of this Tribunal in Bhuruka Gases Ltd. Vs. CCE, Bangalore I referred to by the appellants has discussed in detail sales promotion activity. For better appreciation we reproduce para 7 of the said order: 7. Now the 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 b .....

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