2018 (5) TMI 914

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..... actured products. The Department has been of the view that the sales activity does not pertains to the promotion of the assessee's product, at the same time, the activity cannot be considered to be directly or indirectly related to the manufacture or sales promotion of the manufactured product and, therefore, does not fall in the inclusive part of the definition of input service, as provided under Rule 2 (l) of the Cenvat Credit Rules, 2004 and hence not entitled for Cenvat credit. 3. I have heard both sides and perused the case record of the appeal. 4. The Central Government vide Notification No. 2/2016-CE (ST) dated 03/02/2016 has amended the definition of 'input services' under Rule 2 (l) of the Cenvat Credit Rules by inserting the fol .....

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..... r res-integra as there have been several pronouncement of this Tribunal on this issue, on the basis of judgment in case of M/s Essar Steel India Ltd. (supra) and the benefit of Cenvat credit on the service tax paid on the sales commission has been allowed to the assessees. In one such case of this Tribunal in M/s Mangalam Cement Ltd. and ors. vs. CCE, Udaipur vide final No. 56683-56685 of 2017 dated 28/08/2017, the Tribunal has held that :- "4. With regard to availment of Cenvat credit on the commission paid for sale promotion activities, the CBEC vide Circular No. 943/4/2011-CX. Dated 29/04/2011 has clarified that Cenvat credit is admissible on the services of the sale of the dutiable goods on commission basis. The said circular was endo .....

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..... s promotion service by way of sale of dutiable goods on commission basis. Further, by 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 Notification No. 2/2016-CX (N.T.) (supra) should be declaratory in nature and effective retrospectively". 6. On the basis of above settled position of law, I do not find any shortcoming in the order of Commissioner (Appeals) and, accordingly do not find any merit in th .....

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