2011 (5) TMI 326 - AT - Service Tax

Refund of CENVAT Credit - Input services - Commission paid to foreign agent of sales promotion activities - Credit denyed on the ground that the input services were not used in the manufacture of finished product which were exported - Appellant submitted that the Notification No.7/2010-Central Excise (N.T.), dt.27.2.10 has amended the word used in to used in or in relation to - Further, this change has been given effect from 14.3.06, which was the effective date of earlier notification, under which the claims were made - Therefore, the matter has to be remanded to original adjudicating authority, to consider the refund claims afresh on the basis of the law as it existed now and take into account the retrospective amendment made to the notification.

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appellant's refund of CENVAT Credit for Service Tax paid on commission to foreign agent for sales promotion activities. The Commissioner(Appeals) had initially denied the refund, but the appellant argued that a retrospective amendment allowed them to claim the credit. The matter was remanded to the original adjudicating authority for reconsideration based on the amended law.