2014 (5) TMI 723 - AT - Service Tax

CENVAT Credit - input services - commission given to the commission agents for sale of their final products - Held that - Appellant is manufacturer of electric motors and utilises the services of commission agents for sale of their final products. The commission agent receives the commission for sale of goods and for services rendered, discharges the service tax liability. In my considered view, the activities of the commission agent in selling products of the appellant would be covered under Rule 2(l) - appellant has made out a prima facie case for waiver of pre-deposit of amounts involved. - STay granted.

Summary

The stay petition was filed against the order-in-appeal No. SKSS/272/DMN/SDMN/2010-11. The appellant availed cenvat credit on service tax paid to commission agents for selling Electric Motors. The Tribunal allowed waiver of pre-deposit and stayed recovery until appeal disposal. The appeal was listed for final disposal along with the Revenue's appeal.