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TMI Blog2019 (7) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... on sales commission to their sales agents. The Department was of the view that the said credit is not eligible as these services are not directly or indirectly related to the manufacture of the final product. 1.3 A Show Cause Notice was issued to the appellants proposing to demand the irregularly availed credit to the tune of Rs. 8,16,083/- along with interest and for imposing penalty. After due process of law, the Original Authority confirmed the demand, interest and imposed penalty. In appeal, the Commissioner (Appeals) vide impugned order dated 28.12.2018 upheld the same. Hence, this appeal. 2.1 On behalf of the appellant, Ld. Advocate Ms. S. Sridevi appeared and argued the matter. She adverted to the definition of "input service", as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board Circular No. 943/4/2011-CX dated 29.04.2011 wherein it has been explained that sales promotion is linked with actual sale and therefore, credit is eligible on Service Tax paid to sales commission agent activities also. 3. Ld. AR Shri. L. Nandakumar appearing on behalf of the respondent supported the findings in the impugned order. He emphasized that the above explanation was introduced in the definition of input services, which states that the commission paid to sales commission agents is eligible for credit and the same falls within the definition of "input service" only with effect from 03.02.2016, as clarified. Prior to this, the inclusive part of the definition allowed credit only on services related to sales promotion. The acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide Circular No. 943/4/2011-CX dated 29.04.2011 has clarified that the remuneration paid to sales commission agents is linked with actual sale and it involves an element of sales promotion. The same has been discussed in paragraph 10.12 of the order passed by the Adjudicating Authority. 6.4 The Tribunal in the case of M/s. Krishi Icon (supra) had occasion to analyse the application of the explanation added with effect from 03.02.2016 and had observed that it was merely clarificatory in nature and that commission paid for sales commission activities prior to 03.02.2016 is also eligible. 7. After appreciating the facts and evidences presented before me as well as following the decision of the Tribunal in M/s. Krishi Icon (supra), I am of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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