2014 (10) TMI 382 - AT - Service Tax

Denial of CENVAT Credit - Business Auxiliary Service - Credit denied on the premise that same does not fall under Rule 2(l) of the Cenvat Credit Rules 2004 - Held that - High Court of Bombay in Ultratech Cement Ltd. (2010 (10) TMI 13 - BOMBAY HIGH COURT) has held that any assessee who is a manufacturer of excisable goods or availed any input service in the course of their business is entitled for input service credit. Admittedly in this case commission has been paid by the appellant for selling of the final product which has direct nexus with their business activity. Therefore the appellant are entitled for input service credit - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Mumbai allowed the appeal regarding denial of input service credit on Business Auxiliary Service for commission paid to agent, citing a previous ruling by the Hon'ble High Court of Bombay in Ultratech Cement Ltd. The Tribunal held that the appellant is entitled to input service credit as the commission paid for selling the final product has a direct nexus with their business activity. The impugned order was set aside, and the appeal was allowed with consequential relief.