TMI Blog2019 (7) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD II VERSUS M/S CADILA HEALTH CARE LTD. [ 2013 (1) TMI 304 - GUJARAT HIGH COURT] , therefore, has no application in the present facts of the case as it was held in the case that though the business activities mentioned in the definition are not exhaustive, the service rendered by the commission agents not being analogous to the activities mentioned in the definition, would not fall within the ambit of the expression activities relating to business . The Tribunal in the case of CGST, C CE, ALWAR VERSUS M/S KRISHI ICON [ 2018 (7) TMI 97 - CESTAT NEW DELHI] had occasion to analyse the application of the explanation added with effect from 03.02.2016 and had observed that it was me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, Ld. Advocate Ms. S. Sridevi appeared and argued the matter. She adverted to the definition of input service , as it stood prior to 03.02.2016 as well as post 03.02.2016. It is submitted by her that sales promotion was within the inclusive part of the definition. The appellants had engaged overseas commission agents for promoting the sales of the finished products manufactured by the appellants. Commission was paid to them according to the quantity of goods sold by them. The agreement shows that these commission agents have also to endeavour to promote the sales of the finished products manufactured by the appellant. It is also argued by her that without making an effort to promote the products, the commission agents cannot achieve thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 03.02.2016, as clarified. Prior to this, the inclusive part of the definition allowed credit only on services related to sales promotion. The activity done by a sales commission agent being merely sale of goods, cannot be considered as sales promotion. The Hon ble High Court of Gujarat in the case of M/s. Cadila Healthcare Ltd. (supra) has analysed this issue and held that for mere sales commission agent activities, the credit is not eligible. 4. Heard both sides. 5. The issue involved is whether the appellants are eligible for credit of the commission paid to agents working abroad for sale of their goods. 6.1 On perusal of the agreement placed along with the appeal, in paragraph IV, Rights and Obligations of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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