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TMI Blog2015 (9) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ), wherein it is held that: "Any service to be brought within the ambit of definition of "input service" should be one which should specify the essential requirement contained in the main part of the definition. This requirement is equally applicable to the various items mentioned in the inclusive part of the definition as well." Based on the above decision, it was alleged that the services of sales commission agent cannot be considered as a service used by the manufacturer's side directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal. Further, it was alleged that no sales agreement or correspondence produced to establish that such sales promotion services have been rendered and used. 3. The demands raised were confirmed by the Commissioner by distinguishing between the activity of "Sales Promotion" and "Sales". The Commissioner relied upon the decision of the Gujarat High Court in the case of CCE, Ahmedabad- II vs. Cadila Healthcare ltd., - 2013 (30) STR 3 (Guj) for this purpose. He confirmed interest and penalties as well. The appellants are in appeal against the said order before this Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... felt that the interpretation of the aforesaid Board's Circular to be pertaining to "Sale Promotion" in the OIO is incorrect as while clarifying it is merely mentioned that activity of sale promotion is specifically allowed and nowhere does it restrict the same as "sales promotion". 4.2 The learned Counsel also submits that the activity undertaken by them is not merely sales of goods but sales promotion. In support of the same, they produced the following: i) Letters written by their agents to various consumers offering them the products manufactured by the appellant. ii) The advertisement placed by them in various newspapers advertising their products manufactured by the appellant. iii) The bills for payment of such advertising expenses and iv) The copies of calendars printed for advertisement of the appellant's products and bills for making the same. 4.3 On these grounds, the appellant asserted that the activity undertaken by them is "sales promotion" activity and not mere "sales" activity. The appellant also relies on various judgements which support their views. Following are the decisions relied by them: a) Ambika Overseas - 2010 (20) STR 514 (Tri) b) Upheld by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as follows: 7. The only point of dispute in this case is as to whether the service of procuring sales orders of cement through commission agents i.e. business auxiliary services being received by them is covered by definition of "input service" or not. On this issue, while there is a direct judgment of Hon'ble Punjab & Harayana High Court in the case of Ambika Overseas (supra), which is in favour of the appellant, there is another judgment of the Hon'ble Gujarat High Court in the case of Cadila Health Care Ltd. (supra), wherein in para 5.2, a contrary view has been taken and in that judgment, Hon'ble Gujarat High Court after discussing in detail has held that the service of commission agent for procuring sales orders is neither covered by the expression "sales promotion" nor by the expression "activities relating to business". Hon'ble High Court in this judgment has observed that the term, "activities relating to business" in the definition of "input service" has to be interpreted on the basis of the activities mentioned after the words "such as" following this expression and that the activities covered by this expression must be similar to the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of final product, the service would not qualify to be a input service under Rule 2(l) of the 2004 Rules." 7.2 Thus in paras 28 and 29 of the above judgment, Hon'ble Bombay High Court has in clear terms held that the expression "activities relating to business" in the definition of "input service" in Rule 2(l) covers all the activities which are integrally connected with the business of the manufacture of final product and only an activity which is not connected with the business of manufacture of final products would not qualify as the "input service" under Rule 2(l). In para-28 of this judgment, Hon'ble Bombay High Court has emphasized that the definition of "input service" is very wide and covers not only services, which are directly or indirectly used in or in relation to the manufacture of final products, but also includes various services used in relation to the "business of manufacture of final products", be it prior to the manufacture of final products or after the manufacture of final products and that the definition of "input service" is not restricted to the services used in or in relation to manufacture of final products. Same view has been taken by Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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