2018 (1) TMI 1208

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..... financial option to the respective customers and for the said purposes, they had approached the financial companies since they do not have such in-house finance facility - this arrangement has been rightly considered by the ld. Commissioner (Appeals) as a sale promotion activity and accordingly eligible input service - appeal dismissed - decided against Revenue.
Dr. D. M. Misra, Member (Judicial) Dr. J. Nagori, A.R. for the Appellant-Revenue Shri Jigar Shah, Advocate for the Respondent ORDER Per: Dr. D.M. Misra Heard both sides. These two Appeals are filed by the Revenue against the Order-in-Appeal No.RAJ-EXCUS-000-APP-73-15-16 and No.RAJ-EXCUS-000-APP-74-15-16 dated 22.3.2016 passed by the Commissioner (Appeals), Central Excise & .....

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..... plained by the Hon'ble Gujarat High Court in the case of C.C.E., Ahmedabad II Vs. Cadila Healthcare Ltd. - 2013 (30) STR 3 (Guj.) is not satisfied in the present case, inasmuch as, the financial companies do not in any manner advertise the goods manufactured by the Respondent nor promote the sale. Therefore, subvention charges/incentive are in the nature of sales commission and accordingly not admissible in view of the judgment of the Hon'ble Gujarat High Court in the case of Cadila Healthcare Ltd. (supra). 4. Ld. Advocate for the Respondent on the other hand vehemently argued that the provider of services, namely, banking companies had paid the service tax under the category banking and financial services and the Respondent had availed cr .....

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..... a part of the strategy to enhance sale of its product, AAL have thought of attracting its customers by providing a financial option to its prospective customers. Since AAL does not have financial arm to provide financial assistance to such prospective customer, further the products are relatively new to the market, AAL have considered and though fit to support the sale by providing comforts to the customers and have approached MMFSL to have a tie up to provide financial assistance to its prospective customers and to provide financial products by way of loan to the prospective customer who purchases the products from AAL". At Clause (5), the consideration for such clearances reads as follows: (5) CONSIDERATION MMFSL shall make all effo .....

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