2013 (4) TMI 217 - AT - Central Excise

Admissibility of Cenvat Credit Service Tax paid to commission/selling agent against the services received Respondent took the credit for the same which was denied by revenue services of selling agent has been availed by the respondents outside their factory premises. Appeal is preferred to Commissioner (Appeals), who set aside the adjudication order. Against the appeal, revenue is before tribunal. Held that - the assessee is entitled to take Cenvat credit of service tax paid by them on the services availed by them in the course of business of manufacturing as held by the Hon ble High Court of Bombay in the case of Ultra Tech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT . Appeal as well as the stay application filed by the revenue is dismissed.

Summary

Issues:
1. Appeal against the impugned order regarding CENVAT Credit availed by the respondent on service tax paid to selling agents.
2. Entitlement of CENVAT credit on commission paid to selling agents outside factory premises.

Analysis:
1. The appellant, a manufacturer of excisable goods, availed the services of selling agents who paid service tax on the commission received and issued invoices reflecting the service tax. The revenue contended that since the services were availed outside the factory premises, CENVAT credit on the commission was not permissible. The Commissioner (Appeals) set aside the demand confirmed by adjudication, leading to the appeal before the Tribunal.

2. The Tribunal referred to the precedent set by the Hon'ble High Court of Bombay in the case of Ultra Tech Cement Ltd. 2010 (260) ELT 369, which established that an assessee is entitled to CENVAT credit on service tax paid for services availed in the course of manufacturing business. In line with this, the Tribunal upheld the entitlement of the respondent to input service credit on Business Auxiliary Service, specifically the commission paid to the selling agents. Consequently, the impugned order was upheld, dismissing the appeal and stay application filed by the revenue.

Conclusion:
The Tribunal ruled in favor of the respondent, affirming their entitlement to CENVAT credit on the commission paid to selling agents for services availed in the manufacturing business. The judgment highlighted the established principle allowing such credit and dismissed the revenue's appeal and stay application accordingly.