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TMI Blog2017 (1) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter Heading 73 Central Excise Tariff Act, 1985. During the course of audit, it was observed by department that the appellant has wrongly availed the credit of service tax on sales commission. On this basis, a show-cause notice was issued demanding payment of irregular credit availed on sales commission amounting to Rs. 10,37,530/- for the period from 13.3.2007 to 31.1.2008 in terms of Rule 14 of CCR, 2004 along with interest and proposed penalty. After following due process of law, the original authority confirmed the demand and aggrieved by the said order, the appellant filed appeal before the Commissioner (A) who rejected the appeal on the ground that the activity of sales commission paid to the agents was no way related to the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e definition of input services allows all services used for clearance of final products up to the place of removal. Moreover, the activity of sales promotion is specifically allowed and on many occasions the remuneration for same is linked to actual sale. Reading the provisions harmoniously, it is clarified that the credit is admissible on the services of sale of dutiable goods on commission basis . He also submitted that Notification No.2/2016-CE dated 3.2.2016 inserted Explanation to input service definition i.e., for the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis . He also submitted that the Explanation added to the definition of input service vide Notification No.2/2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. After considering the submissions of both the parties and perusal of the evidence on record and after going through the various decisions cited supra, I am of the considered opinion that the impugned order is not sustainable in law and the case of the appellant is squarely covered by the various decisions cited supra. Further, I find that the sales commission is directly attributable to sales of the products. Any activity which amounts to sale of the products is deemed to be sales promotion activity in the normal trade parlance. The commission is paid on sales of the products/services with an intention to boost the sale of the company. In view of the same, the sales commission has a direct nexus with the sales which in turn is related t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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