TMI Blog2018 (2) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... made a submission that agents procures Orders for which commission is charged, therefore there is nexus in procurement of Orders and manufacture & clearance of sugar - Held that: - reliance placed in the case of Dwarikesh Sugar Industries Ltd. & others [2017 (10) TMI 1114 - CESTAT, ALLAHABAD], where it was held that appellants are entitled to avail Cenvat credit on commission paid to the selling agent for selling the goods in terms of Rule 2(l) of the CCR 2004 - credit allowed. Appeal dismissed - decided against appellant-Revenue. - Appeal No. E/70336/2017-EX [ SM ] - Final Order No. 70272/2018 - Dated:- 20-12-2017 - Mr. Anil Choudhary, Member (Judicial) Shri Sandeep Kumar Singh, Commissioner (AR), for Appellant Shri Aalok A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid to agents for procuring orders (sales). 2.1 A Show Cause Notice dated 1.9.2014 was issued to the respondent for the period Aug. 2013 to March 2014 asking them to show cause as to why demand of Cenvat Credit of ₹ 5,38,015/- on capital goods, ₹ 5,07,190/- on inputs and ₹ 11,79,518/- on input services (Commission paid to agents) be not raised and penalty be not imposed. The respondent filed reply to the show cause notice and also submitted detailed chart giving use of each and every item in question. The adjudicating authority vide Order-in-Original dated 6/1/2016 allowed Cenvat credit of ₹ 4,77,587/- on Steel Tubes, Chain spars, parts of Cane Carrier, Chain Forged Block Nickel Screen and disallowed the Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ump. Paint Thinner have been used at Pan, Crystallizer, boiler etc. to prevent the machine/machinery from rusting and maintain hygienic condition to manufacture sugar. The Flexible Rolls were used in making small packs of 1 Kg/5Kg of sugar within the factory. Water Treatment chemicals were used in purifying water in cooling tower of water treatment plant, without which the manufacturing process cannot be carried-out. The use of water Treatment Chemicals is as per requirement of Pollution Control Board. The respondent has claimed the Cenvat Credit on above items as input under Rule 2(k) of Cenvat Credit Rules 2004. As regards availment of Cenvat Credit of service tax on commission paid to agents, it has been the claim of respondent that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and evidence available on record, referring and relying on number of Tribunal judgments allowed the Cenvat credit on Welding Electrodes, Paint Thinner, Flexible Rolls and Water Treatment Chemicals. The issue is covered by this Tribunal judgment in the case of U.G. Sugar Indus. Ltd. reported in 2017 (347) E.L.T. 491 (Tri. - All.) wherein it has been held- Cenvat credit - Capital goods - Welding electrodes, winding wire, MS wire, MS angle, CAF jointing sheets and asbestos packings used as capital goods in sugar factory eligible to credit - Rules 2 and 3 of Cenvat Credit Rules, 2004. Further, Hon ble High Court of Chhattisgarh in the matter of UOI Vs Associated Cement Company Ltd. reported in 2016 (341) E.L.T. 175 (Chatt.) confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013 (30) S.T.R. 3 (Gujarat) wherein it has been held that such commission agents are not engaged in the activity of sales promotion. The said judgment has been examined by this Tribunal in the case of Essar Steel India Ltd. Versus Commissioner of Central Excise Service Tax, Surat-I reported at 2016 (335) E.L.T. 660 (Tri. Ahmedabad) after examining the issue of sales promotion activity, as per Section 65(19) of the Finance Act, 1994 which defines the Business Auxiliary Service. While examining the definition of Business Auxiliary Service, where the agent is engaged in either promotion or marketing or where sale of goods produced or service provided by or belonging to the appellant, the Hon ble High Court has considered the issue of sales p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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