TMI Blog2019 (4) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... 20273-20274/2019 - Dated:- 19-3-2019 - MR. S.S GARG, JUDICIAL MEMBER Shri Kuriyan Thomas, Advocate For the Appellant Smt. Kavitha Podwal, Superintendent (AR) For the Respondent ORDER Per: S.S GARG These two appeals are directed against the impugned order dt. 30/10/2018 passed by the Commissioner(Appeals) whereby the Commissioner(Appeals) has rejected both the appeals and upheld the Order-in-Original. Since the issue involved in both the appeals is identical, both the appeals are being disposed of by this common order. The details of appeals are given herein under:- Appeal No. Period involved Amount involved E/20146/2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT Credit Rules, 2004 (CCR) and eligible for taking CENVAT credit. Accordingly, he disallowed the CENVAT credit of ₹ 22,99,719/- in respect of the first show-cause notice in respect of domestic commission agent and with regard to second show-cause notice also, he disallowed the CENVAT credit of ₹ 2,03,451/-. Aggrieved by the said order, appellant filed appeals before the Commissioner(Appeals) who rejected both the appeals. 3. Heard both sides and perused records. 4. The learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that vide Notification No.02/2016-CE(NT) dt. 03/02/2016, it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cited supra. Further, I find that the sales commission is directly attributable to sales of the products. Any activity which amounts to sale of the products is deemed to be sales promotion activity in the normal trade parlance. The commission is paid on sales of the products/services with an intention to boost the sale of the company. In view of the same, the sales commission has a direct nexus with the sales which in turn is related to the manufacture of the products. It is to be understood that there need not be manufacture unless there is sale of product. To increase the manufacturing activity encouragement is being given for increased sales. Hence, the commission paid on sales becomes part of sales promotion resulting in increased manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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