TMI Blog2017 (12) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... 04/2011 has clarified that Cenvat credit is admissible on the services of the sale of the dutiable goods on commission basis. The said circular was endorsed by the Central Government vide N/N. 2/2016-CE (NT) dated 03/02/2016 - this Tribunal in the case of Essar Steel India Ltd. [2016 (4) TMI 232 - CESTAT AHMEDABAD] has held that the said notification should be considered as declaratory in nature a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 passed by the Commissioner of Central Excise, Udaipur, Jodhpur and Alwar, wherein Cenvat credit was denied on the ground that sales/marketing commission paid on sale of finished goods is not an input service defined under Rule 2 (l) of the Cenvat Credit Rules. The learned Advocates appearing for the appellants relied on the notification dated 03/02/2016 issued by the Central Government to stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motion activities. 2. On the other hand, learned DR appearing for the Revenue reiterates the findings recorded in the impugned order and further submits that in view of the Hon ble Gujarat High Court judgment in the case of CCE, Ahmedabad III Vs. Cadila Healthcare Ltd. 2013 (30) S.T.R. 3 (Guj.), commission paid on sale of the finished goods cannot be considered as input service for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n judgments of different High Courts and also the notification dated 03/02/2016, this Tribunal in the case of Essar Steel India Ltd. (supra) has held that the said notification should be considered as declaratory in nature and effective retrospectively. The relevant paragraph in the said decision is extracted herein below :- 20. But, the Hon ble Gujarat High Court in the case of Cadila H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserting the Explanation in the Rule 2(l), it has confirmed the Board Circular and resolved the different views of the High Courts. Taking into circumstances under which the Explanation was inserted in Rule 2(l) of Rules, 2004 and consequence of the Explanation to extend the benefit to the assessee as per Board Circular, we hold that the Explanation inserted in Rule 2(l) of Rules, 2004 by Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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