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TMI Blog2021 (5) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... ailing cenvat credit on various inputs, input services and capital goods in terms of the provisions as laid down under the Cenvat Credit Rules, 2004. The appellants had entered into an agreement with M/s Nicco Parks and Resorts Ltd. for sale of their products from the latter's premises. For this purpose, the appellants paid upfront fees and also made payment based on quantity sold during the Financial Year 2013-2014 and 2014-2015. The scrutiny revealed that the appellants availed cenvat credit of service tax paid on invoices raised by M/s Nicco Park and Resorts Ltd. towards the sales commission, which accordingly to the show-cause notice, did not qualify as eligible input service. 2. The Adjudicating Authority disallowed the cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Circular No.943/4/2011-CX. dated 29.04.2011 at Sl.No.5 and the Board's Instruction F.No.96/85/2015-CX.I dated 07.12.2015 at Point No.B.30. The Ld. Advocate further submitted that the issue whether the definition of "input service" specified under Rule 2 (l) of the Cenvat Credit Rules, 2004 as it stood prior to 3rd February, 2016, covers sales commission as eligible "input service" and the effect of the Explanation what has been added to the definition w.e.f.03.02.2016. He vehemently submitted that the Explanation inserted under Rule 2 (l) w.e.f. 03.02.2016, has the retrospective effect so as to cover the period upto 03.02.2016. In support of his submissions, he relied upon the following decisions : (i) 2016 (335) ELT 660 (Tri.-Ahmd.)-Es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, had been regularly submitted. The details of the credit could not be mentioned therein as there was no scope to furnish any such details. He vehemently argued that the Department was not prevented from making up its mind in the matter for issuance of the show-cause notice within the normal period of limitation. In support of his submission, he relied on the various decisions and some of them are as under : (i) 2017-TIOL-463-CESTAT-DEL : CCE,Raipur Vs. M/s Drolia Electro Steel Pvt. Ltd. (ii) 2016-TIOL-1959-CESTAT-DEL : CCE & ST Vs. ZYG Pharma Pvt. Ltd. (iii) 2016-TIOL-1967-CESTAT-HYD : M/s Ultretech Cement Ltd. Vs. C & CCEx. (iv) 2017 (49) STR 84 (Tri.-Hyd.) : CC,CE & ST Vs. Sri Sai Sindhu Industries Ltd. 5. Ld.D.R. fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure are directed inter-related and the commission paid on sales needs to be accounted for as services related to sales promotion. Further, I follow the ratio of the decision of the Division Bench of this Tribunal in the case of Essar Steel India Ltd. cited supra, wherein the Tribunal, after discussing all the previous cases and Rules of interpretation, have held that the "Explanation" inserted in Rule 2 (l) of Cenvat Credit Rules, 2004 vide Notification No.2/2016-CE (N.T.) dated 03.02.2016 is declaratory in nature and is applicable retrospectively. 9. In view of the above discussions, the impugned order cannot be sustained and is, therefore, set aside. 10. The appeal filed by the appellant is allowed with consequential relief as per law. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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