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TMI Blog2016 (8) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... circulars for promoting sales. It also says that the appellants will execute orders promptly placed by said Francis Klein & Co. Pvt. Ltd. We cannot say that said M/s. Francis Klein & Co. Pvt. Ltd. are only primarily concerned with sales not with the sales promotion. It is to be noted that without any sales promotion there cannot be any final sale. Hence, the input services in question are in the category of Sales Promotion, which would be covered by definition of input services given in Rule 2(l) of Cenvat Credit Rules 2004. Therefore the appellants would be entitled to the cenvat credit for the service tax paid for these input services in question. - Decided in favour of appellant - ST/74/2011-DB - Final Order No. 20272 / 2016 - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s promotion and for the sales promotion only they are compensating M/s. Francis Klein Co. The learned advocate is referring to the agreement, which they have signed with M/s. Francis Klein Co. Pvt. Ltd.; it has the Clause 2 saying they will pay commission of 6.5% to M/s. Francis Klein Co. Pvt. Ltd., and further she refers to Clause 6(i) that the appellant would provide Francis Klein with complete catalogues, brochure books, circular for promoting the sale of their products. 2.1.1. The learned advocate also refers to Hon ble Punjab Haryana High Court s decision in the case of Commissioner of Central Excise, Ludhiana Vs. Ambika Overseas [2012 (25) S.T.R. 348 (P H)], saying that canvassing and procuring of orders are in the category ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services in question cannot be called commission agency services for sales. When we examine and consider all the activities of M/s. Francis Klein Co. Pvt. Ltd., it is clear that they are engaged in promotion of sales for the products manufactured by the appellants. Here the agreement says that appellants would provide them complete catalogue instruction books, circulars for promoting sales. It also says that the appellants will execute orders promptly placed by said Francis Klein Co. Pvt. Ltd. We cannot say that said M/s. Francis Klein Co. Pvt. Ltd. are only primarily concerned with sales not with the sales promotion. It is to be noted that without any sales promotion there cannot be any final sale. During the hearing, it has been po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts, in canvassing business and make their network available for expanding the business, in my opinion this is nothing but sales promotion. In respect of another agent namely SPS Metal Cast Alloys Ltd., the appellant could not show any letter or agreement. However in every debit note, the opening sentence reads as under: Being our commission towards the procurement of order for the liquid nitrogen to various parties as per details given below In the case of Ambika Overseas, Hon ble High Court of Punjab Haryana has taken the view that procurement of orders is one of the aspects of sales promotion. 4.1. After considering the facts on record and above discussions we are of the view that the input services in question are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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