9911796707
TMI Blog2011 (11) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is not eligible for credit of Service Tax on services rendered by their commission agents as they were not input services as per provisions of Rule 2(l) of Cenvat Credit Rules, 2004. On adjudication, the authority denied the credit of Service Tax and confirmed demand of Rs. 1,65,564/- along with interest and penalty. The appellant's main contention was that the service rendered by them is covered by the definition of input service as sales promotion is specifically provided in the definition itself. 3. On going through the facts of the case, I find that there are conflicting decisions of the Tribunal and the claim of the appellant about admissibility of Cenvat credit of Service Tax paid on commission paid by their commission age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which is not included in transaction value of goods and excise duty is not paid on the same. The main work of the Commission Agents is not to procure the orders for the appellant but their main work is to purchase the goods from the appellant and sell the same to prospective buyers. During the personal hearing, the representatives of the appellant were requested to submit ledgers of the Commission Agents to ascertain as to whether they sell the goods to Commission Agents or the Commission Agents only procure the orders. The appellant did not submit copy of ledgers of Commission Agents which reveals that they were selling goods to Commission Agents and were paying only quantity discount to them. This further shows that the Commission Agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; C.C.E. v. Kiri Dyes and Chemical Ltd. - 2010 (249) E.L.T. 361 (Tri.). 7. Needless to say that the above judgments are applicable in the present case. The Commissioner (Appeals) as rightly offered an option for payment of the reduced penalty, i.e. 25% of the duty subject to the condition that duty along with interest and 25% of duty as penalty is paid within thirty days of receipt of the order. He has also ordered to pay interest at appropriate rate as per provisions of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. 8. Considering the facts above and the discussions, I do not find any infirmity in the Commissioner (Appeal's) order. 9. I uphold the Order-in-Appeal and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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