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TMI Blog2017 (1) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... g 94 of Central Excise Tariff Act, 1985 and are availing CENVAT credit of service tax paid on sales commission. During the audit, the appellant was advised to reverse the entire credit of Rs. 17,76,499/- which was paid by the appellant through TR-6 challan in PLA under protest by the appellant. Thereafter, the appellant filed an application for refund of the said amount. The refund was rejected by the adjudicating authority mainly on the ground that the service tax paid on commission is beyond the place of removal and hence credit is not permitted. Aggrieved by the said order, the appellant filed appeal before the Commissioner (A) who also upheld the Order-in-Original mainly on the ground that the sales commission is post-sale activity and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on many occasions the remuneration for same is linked to actual sale. Reading the provisions harmoniously, it is clarified that the credit is admissible on the services of sale of dutiable goods on commission basis . He also submitted that Notification No.2/2016-CE dated 3.2.2016 inserted Explanation to input service definition i.e., for the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis . He also submitted that the Explanation added to the definition of input service vide Notification No.2/2016 is declaratory in nature and therefore applicable retrospectively. For this submission, he relied upon the decision in the case of Essar Steels India Ltd. vs. CCE: 2016-TIOL-520-CES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that the impugned order is not sustainable in law and the case of the appellant is squarely covered by the various decisions cited supra. Further, I find that the sales commission is directly attributable to sales of the products. Any activity which amounts to sale of the products is deemed to be sales promotion activity in the normal trade parlance. The commission is paid on sales of the products/services with an intention to boost the sale of the company. In view of the same, the sales commission has a direct nexus with the sales which in turn is related to the manufacture of the products. It is to be understood that there need not be manufacture unless there is sale of product. To increase the manufacturing activity encouragement is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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