2012 (10) TMI 762 - AT - Service Tax

Cenvat credit - commission paid to consignment agent Held that - Role of consignment agent attributing to the promotion of the sale. Once sale promotion falls within Rule 2 (l) of Cenvat Credit Rules 2004, admissibility of cenvat credit of the service tax paid in respect of such service availed is permissible - pre-deposit is waived

Summary

The Appellate Tribunal CESTAT, New Delhi ruled that commission paid to a consignment agent, subject to service tax, allows the appellant to claim cenvat credit. The tribunal emphasized that if the consignment agent's role contributes to sales promotion, cenvat credit for service tax paid is permissible. The tribunal also noted that evidence of the goods' movement and the relevance of the service are crucial for such claims. The appeal was allowed, and the pre-deposit requirement was waived.