2017 (11) TMI 818

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..... as to also do the promotional activities in respect of the goods manufactured and exported by the respondent. The first appellate authority has correctly recorded the factual matrix in the matter and held that CENVAT credit is available to respondent herein of the service tax paid under reverse charge mechanism. Appeal dismissed - decided against Revenue.
Shri M.V. Ravindran, Judicial Member Shri Madhupsharan, Asst. Commissioner(AR), For the Appellant Shri Raghavendra, Advocate, For the Respondent ORDER Per: M.V. RAVINDRAN Appeal are filed by the Revenue against the Order-in-Appeal No.29 & 30/2015 dt. 16/03/2015. 2. Heard both sides and perused records. 3. On perusal of records, it transpires that the issue is regarding availment .....

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..... research are also included. The lower authority has tried to distinguish the ratio decisions relied upon by the appellant on the ground that sales commission paid to agent for sales promotion is different as in this case the commission agent has not procured any orders for the Indian company but has acted as a distributor for the products manufactured and exported by the appellant. Whereas the appellant contends that the products are directly sold to the clients for whom orders are obtained by the foreign agent, hence the refund claimed in this case pertains to commission paid to the foreign agent for procurement of orders and this is nothing but sales promotion only. It can be seen from the findings of the lower authority at para 4 f the .....

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..... Asia Pvt. Ltd. Vs. CCE, Bangalore [2015(38) STR 204 (Tri. Bang.)] has considered similar set of facts and held that CENVAT credit is eligible to be availed on the service tax paid on such amounts. 7. On careful consideration of the submissions made, I find from the reading of the marketing representation agreement between the respondent and the upcountry entity, clearly spells out the responsibilities of the upcountry entity which includes assisting the respondent in various activities and manage regarding marketing and sales objectives to be achieved. This would mean that the upcountry entity has to also do the promotional activities in respect of the goods manufactured and exported by the respondent. I find that the first appellate autho .....

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