9911796707
TMI Blog2023 (5) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... (Refer Para 13.2 of the impugned order) 1,11,99,110 - 1,11,99,110 2 Credit denied on the ground that they are not having nexus with output (Refer Para 12.8 of impugned order) - - - i. Consulting Engineer 62,595 - 62,595 ii. Telecommunication 2,155 - 2,155 iii. Stockbroker 5,324 - 5,324 iv. Company Secretary/Chartered Accountant Services 1,041 - 1,041 v. Insurance Services 1,039 - 1,039 vi. Courier 308 - 308 3 Credit denied for not adducing evidence (Refer Para 14.1 of impugned order) - - - a. Annual Maintenance of Xerox machines 74,200 - 74,200 b. Car rentals 514 - 514 c. Renting of Immovable property 1,29,169 - 1,29,169 d. Tour operating services 46,208 - 46,208 4 Renting of office building - also used by other group companies (Para 13.2 of impugned order) 64,374 - 64,374 5 Billing in the name of units/service provided to other units 27,556 7,832 19,724 6 Credit taken twice 633 60 573 7 Service Tax Registration No. not mentioned in the invoice 2,044 2,044 - 8 Bills in the name of other companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Explanation - For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis" 3. He also relies on the case law of Essar Steel India Ltd vs CCE & ST, Surat [2016 (335) ELT 660 (Tri-Ahm)] wherein the Tribunal has held that the explanation added on 03.02.2016 is retrospective in nature. Therefore, he submits that they were correct in availing the Cenvat Credit on account of the sales promotion activities taken up by Veljan. 4. In respect of Service Tax denied on various other input services like Consulting Engineer, Telecommunication, Stockbroker etc., he submits that the Adjudicating Authority has not properly verified the documentary evidence placed before him and requests that the Appellant may be given an opportunity to once again present all these documents to enable the Adjudicating Authority to determine the Cenvat Credit eligible to the Appellant. 5. Learned Consultant also contests the confirmed demand on the ground that the Show Cause Notice was issued on 13.12.2010 by invoking extended period of limitation is hit by time bar. He submits that the Appellants have taken the Cenvat Credit properly and indicated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture the required products by the 'Buyer' as per the specification mentioned in the purchase order placed from time to time. 2. .. 3. .. 4. ..That the payment will be made within 90 days from date of physical removal of goods from 'Manufacturers' factory for material to be shipped.................." 10. It can be seen that Veljan referred to as "buyer" in the Agreement, canvasses and procures orders from the foreign customers and passes on such orders to the Appellant for manufacturing the same and exporting to the foreign customers. For undertaking these activities they are paid incentive of 10% of the total sales effected. It gets clarified that without procuring the Orders by Veljan, the Appellant would not be in a position to export. Order procurement itself means that they are canvassing and promoting the products of the Appellant. It is seen that the Adjudicating Authority has relied on the case law of CCE vs Cadila Healthcare Ltd (cited supra) wherein at Para 5.2 (viii) the Hon'ble High Court has held as under: "(viii) ....................................Obviously, commission paid to the various agents would not be covered in this expression since it cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Section/Rule. Sometimes, the explanation may be inserted to clarify a doubtful point of law, which would be effectively restrospectively. In the present case, the expressions in the explanation as inserted by Notification No. 2/2016-C.E. (supra), make it clear that it is for explaining the meaning of clause "sales promotion" in the context of Rule 2(l) of the Rules, 2004. It is to provide an additional support to the dominant object of the word "sales promotion" in Rule 2(l) in order to make it meaningful and purposeful. The language of the explanation is consistent with Board Circular to the benefit of the assessee and it would be effective retrospectively. The Hon'ble Supreme Court in the case of Vatika Township Pvt Ltd (supra), in the identical situation, held that if a legislation confers a benefit on some other person or on the public generally, and where to confer such benefit appears to have been the legislature's objet, then the presumption would be that such a legislation, giving it a purposive construction, would warrant it to be given a retrospective effect..." [emphasis supplied] 14. Further, this Tribunal in the case of Inventaa Chemical Ltd vs CCT, Guntur [2022 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Stockbroker 5,324 iv Company Secretary/Chartered Accountant Services 1,041 v Insurance Services 1,039 vi Courier 308 2 Credit denied for not adducing evidence (Refer Para 14.1 of impugned order) - a Annual Maintenance of Xerox machines 74,200 b Car rentals 514 c Renting of Immovable property 1,29,169 d Tour operating services 46,208 3 Renting of office building - also used by other group companies (Para 13.2 of impugned order) 64,374 4 Billing in the name of units/service provided to other units 19,724 5 Credit taken twice 573 17. The Adjudicating Authority may pass an Order after due verification of all documentary evidence produced before him for the present appellant. Since the issue pertains to 2006-08, the Adjudicating Authority is directed to pass a suitable order within Four months from the date of receipt of this order. 18. To summarise: (a) Cenvat Credit taken on Incentives paid - Appeal allowed. (b) Cenvat Credit in respect of various services - Matter remanded to the Adjudicating Authority 19. The appeal is disposed of as thus. (Operative Part of the Order was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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