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TMI Blog2021 (5) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... JAB HARYANA HIGH COURT] , had clearly held that the sale and manufacture are directed inter-related and the commission paid on sales needs to be accounted for as services related to sales promotion. The impugned order cannot be sustained and is, therefore, set aside - Appeal allowed - decided in favor of appellant. - Excise Appeal No.76950 of 2018 - FINAL ORDER NO.77090/2019 - Dated:- 22-9-2020 - MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) Shri S.P.Majumdar, Advocate for the appellant Shri H.S.Abedin, Authorized Representative for the Respondent ORDER The facts of the case in brief are that the appellants are engaged in the manufacture of water, aerated water, fruit pulp based drinks, Beverages in Bag (BIB) etc. class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent appeal before the Tribunal. 4. The Ld. Advocate appearing on behalf of the appellant, submitted that for the services received from M/s Nicco Parks, the appellants paid sales commission in the form of upfront charges as well as based on the quantity sold. As per the agreement between the appellants and M/s Nicco Parks, the latter was prohibited from selling or displaying the products of any other manufacturers and to sell the products of the appellants only. M/s Nicco Parks raised invoices for the sales commission together with service tax on such sales commission. The appellants availed cenvat credit of the service tax so paid considering the same as eligible input service, which was linked with the sale as well as sales promotion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. Genus Paper Boards Ltd. ; (viii) 2017 (52) STR 370 (Tri.-Del.) CCEx ST, Meerut I Vs. Plastiblends India Ltd. (Unit I) (ix) 2016 (46) STR 416 (Tri.-Del.) Bajaj Hindustan Ltd. Vs. CCEx., Lucknow. The Ld. Advocate further submitted that the major portion of the demand is barred by limitation in terms of Section 11A (4) of the Act. It is his submission that the conditions precedent namely, fraud, collusion, willful mis-statement, suppression of facts etc. with an intention to evade payment of duty for invoking longer period of limitation are totally absent in this case. The appellants duly reflected all the cenvat credits availed by them in the Cenvat Credit Registers and for all the months, the Cenvat Credit Registers were su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion 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 paid on sales of the products/services with an intention to boost of the Company. The commission paid on sales becomes part of sales promotion resulting in increased manufacturing activity. The sales commission has a direct nexus with the sales, which in turn is related to the manufacture of the products. If there is no sale, there would not be any need to manufacture the products. Be that so as it may, to increase the manufacturing activity an encouragement is being given by way of sales commission for achieving increased sales. 8. I also observe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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