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TMI Blog2018 (2) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit Rules 2004? Whether Cenvat Credit of service tax on sale commission is admissible under definition of input service under Rule 2(l) of Cenvat Credit Rules 2004? 2. Brief facts of the case are that the respondent are engaged in manufacture of sugar & molasses (by-product) falling under Chapter 17 of Central Excise Tariff Act 1985. The respondent has purchased various items of machinery parts & accessories as well as items of Iron & Steel which were used in various machine and machinery installed in the factory, used in the manufacture of final product - sugar & molasses. The respondent availed Cenvat Credit on items namely Steel Tubes/Steel Pipes, Chain Spare, Parts of Cane Carrier, Chain & Chain Spares/Chain block forge, Nickel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position of equal penalty, the respondent filed appeal before Commissioner (Appeals), C.E. Meerut. Learned Commissioner (Appeals) vide Order-in-Appeal No. MRT/EXCUS/000/APPL-I/343/2016-17 dated 15.2.2017 allowed the appeal. 4. Against the order dated 15/02/2017 of Learned Commissioner (Appeals), the Revenue has filed the present appeal. 5. The Learned AR for the Revenue supports the grounds of appeal raised in appeal memo. 6. The Counsel for respondent submits that against the impugned Order-in-Appeal dated 15/02/2017 for denial of Cenvat credit of Rs. 17,47,136/-, the respondent filed the appeal before Commissioner (Appeals) and revenue has not filed any appeal before the said authority. Therefore, the revenue cannot challenge the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016 (341) E.L.T. 175 (Chatt.) (ii) Judgment of Hon'ble CESTAT, Allahabad in the case of U.G. Sugar & Indus. Ltd. reported in 2017 (347) E.L.T. 491 (Tri. - All.) (iii) Hon'ble CESTAT, Allahabad Final Order No.71064-71073/2017 dated 5.9.2017 in the matter of Dwarikesh Sugar Industries Ltd. & others. The counsel for the respondent requested for dismissal of the appeal of Revenue in view of submissions made above and judgments relied thereon. 7. Heard both sides and perused the records. 8. I find, in the case at hand, the issue involved is whether the respondent has rightly availed Cenvat credit on Welding Electrodes, Paint & Thinner, Flexible Rolls and Water Treatment Chemicals under Rule 2(k) of Cenvat Credit Rules 2004and commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) has rightly held in her order that scope of definition of input , w.e.f. 1.4.2011, is wide enough to encompass all goods used in the factory by the manufacturer, unless covered by the exclusion clause of the definition. Since, the above items are not covered by the exclusion clause under Rule 2(k), the Cenvat Credit on the same is admissible. As regards Cenvat Credit of service tax on commission paid to agents is concerned, the respondent 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. The said plea is approved by this Tribunal vide Final Order No.71064-71073/2017 dated 5.9.2017 in the matter of Dwarikes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhiana Versus Ambika Overseas reported at 2011 (07) LCX 0196 has held that Cenvat credit on service tax paid to selling agent for sale of goods is admissible as Cenvat credit. Therefore, as there are contrary judgments, in that circumstance without relying either of the judgment of the Hon'ble High Courts, I decide the issue independently in the light of the decision of this Tribunal in the case of Maheshwari Solvent Extraction Ltd. Versus Commissioner of Central Excise, Nagpur reported at 2014 (299) E.L.T. 116 (Tri. Mumbai) wherein it has been held that if there are contrary view of the Apex Court, in that circumstance the Adjudicating Authority is independent to take any view on merits of the case. Therefore, I hold that appellants are en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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