TMI Blog2018 (1) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... ner - impugned order upheld - appeal dismissed - decided against appellant. - E/308/2008 - Final Order No. 40100 / 2018 - Dated:- 12-1-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri V. S. Manoj, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER Per Bench Brief facts of the case are that the appellants who are engaged in manufacture of parts of cooler, parts of o-separators, parts of mill, machinery parts etc. and are registered with the Central Excise Department. They availed the facility of CENVAT credit of inputs, capital goods and input services. On scrutiny of ER-1 of March 2006, it was noticed that the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with law. That the said allegation is without any basis. The sales commission was paid for procuring the contract. The definition of input service expressly include the activity of sales promotion. Thus the input services falls within the inclusive part of the definition and the appellants are eligible to avail credit. That such input services need not be used directly or indirectly in or in relation to the manufacture of final products. The definition of input service, as it stood during the relevant period clearly states that the services used for sales promotion activities and activities relating to business is eligible for credit. The services of sales promotion were consumed in relation to business and therefore qualifies for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 123.5 crores, the appellant manufactured and supplied excisable goods valued to the tune of ₹ 8,26,73,721/-. Therefore, for the substantial contract value, (Rs.111.51 crores) materials supplied to M/s. Binani Cements Ltd. were bought-out from various persons. The service tax credit availed by the appellant was used for discharging duty on the machineries manufactured by them. The input service of sales promotion thus does not have any nexus to the manufacture of the final products as the service tax paid mainly corresponds to the trading activity of the appellant. The credit has been rightly denied and the order passed is legal and proper. 4. Heard both sides. 5. The main ground of argument put forward by the ld. counsel is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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