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TMI Blog2019 (6) TMI 1617X X X X Extracts X X X X X X X X Extracts X X X X ..... by agents on commission during the period September 2010 to May 2015 along with interest and penalty by the respondent herein. 2. The facts of the case in brief are that the Respondent, M/s. Hindustan National Glass & Industries Limited, is engaged in the business of manufacture of "Glass & Glassware" viz. Glass Bottles classifiable under Central Excise Tariff Sub-Heading 70109000 of the Central Excise Tariff Act. The dispute in the present case relates to the Cenvat credit availed by the Respondent on commission paid to its agents situated in and outside India and appointed for the sale and marketing of their goods. Cenvat credit has been availed on the service tax paid under reverse charge mechanism (RCM) on such commission paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o documentary evidence was put forward by the Respondent to prove that the agents were engaged in sales promotion was totally misrepresented as the Respondent had provided the agreements of with its agents. It is stated in the agreement that the agents were to be engaged in procuring sale orders and the same was also taken in to account at the time of issuance of Show Cause Notice by the department. He relied upon various case laws, in which identical question has been considered and settled in favour of the assessee viz. A. Birla Corporation Ltd. versus Commissioner of C. Ex., Lucknow [2013 (288) E.L.T. 427 (Tri.-Del.)] B. Commr. Of Cus. & S.T., Bangalore versus GE Medical System Pvt. Ltd. [2015 (40) S.T.R. 697 (Tri.-Bang.)] C. Stanl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 manufacturing activity. 6.1. Further, I also find that the Hon'ble High Court of P & H in the case of Ambika Overseas cited supra have clearly held that the sale and manufacture are directly interrelated and the commission paid on sales needs to be taken as services related to sales promotion. Further, I follow the ratio of Essar Steels India Pvt. Ltd. cited supra, wherein the Division Bench of this Tribunal after discussing all the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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