TMI Blog2019 (8) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the clearance of the garments in question and export the same to the foreign countries and earn foreign currency in terms of their obligations as 100% EOU and therefore, the service tax paid on commission to foreign agents could not denied the benefit of Cenvat Credit under Cenvat Credit Rules 2004. Credit allowed - Appeal dismissed - decided against Revenue. - C.M.A.Nos.414 & 415 of 2019 - - - Dated:- 7-8-2019 - Dr. Justice Vineet Kothari And Mr. Justice C.V. Karthikeyan For the Appellant : Mr.A.P.Srinivas For the Respondent : Mr.S.Muthu Venkatraman COMMON JUDGMENT DR.VINEET KOTHARI, J. The Revenue has filed these Appeals agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry Service on commission paid to the commission agent for its activities of sales promotion of the goods exported. The issue being identical, we are of the view that being later judgment the same is applicable to the facts of the present case. 6. In Coca Cola India Pvt. Ltd. Vs. CCE Pune 2009 (242) ELT 168 (Bom.) , the Bombay High Court has dealt in detail the definition of input services prior to the period 1.4.2011. The Hon'ble High Court has held that said definition has a wide ambit so as to include almost all services. The manufacturer/output service provider can take credit of service tax paid on ' activities related to business '. The commission paid to foreign agent is necessarily an activity rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enable. We hold that the denial of credit is unjustified. The impugned orders are set aside. Appeals are allowed with consequential relief, if any, as per law. 3. The Revenue, aggrieved by the said order, is in the Appeal before us. The Appeal was admitted by a co-ordinate Bench of this Court on 25.1.2019 on the following question of law:- Whether the Tribunal is correct in holding that the service tax paid by the appellant on the commission paid to foreign agents for marketing of the products will qualify for CENVAT Credit as contemplated in Rule 2(l) of the CENVAT Credit Rules, 2004? 4. The learned counsel for the Revenue Mr.A.P.Srinivas urged before us th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch foreign countries and they advised not only the design of the garments to be manufactured and supplies to specific orders, which they procure but they also assisted for the clearance of the goods upon export by the Appellant, which is a 100% EOU and ensured the payments in foreign currency, which the Assessee being 100% EOU was under obligation to earn upon such exports under various applicable laws and therefore, the learned counsel for the Assessee contended that such services rendered by foreign agents within the scope of 'Input Services' as defined in Cenvat Credit Rules 2004 and therefore, the Service Tax paid paid on the commission payments made to such foreign agents should not be denied the benefit of Cenvat Credit as p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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