2014 (6) TMI 548

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..... d in the manufacture of sugar. For sale of their final product, they availed the services of the commission agent, and were paying Service Tax on the said services under the category of Business Auxiliary Services. They availed the Cenvat credit of Service Tax so paid by them on the services of commission agent. Revenue is of the view that they are not entitled to avail Cenvat credit inasmuch as commission agent services cannot be considered to be eligible cenvatable services. Accordingly, proceedings were initiated against the appellants by way of issuance of show cause notice dated 1-2-2010 raising demand of duty for the period February, 2005 to September, 2009. The show cause notice stand culminated into the impugned order passed by the .....

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..... the purpose of Modvat, though he has preferred to rely upon the Single Member Bench decision in the case of Chemplast Sanmar Ltd. v. C.C.E., Salem as reported in [2010 (250) E.L.T. 46 (Tri.-Chennai) = 2010 (17) S.T.R. 253 (Tribunal)] laying to the contrary. 5. We find that Tribunal's decision in the case of Bhilai Auxiliary Industries referred supra stands passed before the decision in the case of Chemplast Sanmar Ltd. The said judgment in the case of Bhilai Auxiliary Industries relies upon the Division Bench judgment of the Tribunal in the case of Metro Shoes Pvt. Ltd. v. C.C.E., Mumbai-I as reported in 2007 (8) S.T.R. 502 as also in the case of C.C.E., Ludhiana v. Abhishek Industries Ltd. as reported in 2008 (9) S.T.R. 562 (Tri.-Del .....

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..... clarifying that even after the deletion of expression "activities related to business" from the definition of input services, the credit of Service Tax paid on the sales promotion activities and on the services of sales of dutiable goods on commission basis would be admissible as credit. As such, it is the contention of the learned advocate that even after the "activities related to business" stand deleted from the definition of inputs credit, as per the Board's Circular, the Service Tax paid on commission agent services would be available. However, he clarifies that period involved in the present case is prior to the amendment to the definition of input services and, the precedent decision of the Tribunal would cover the disputed issue in .....

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