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TMI Blog2022 (4) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Hon ble High Court of Punjab Haryana in the case of COMMISSIONER OF CENTRAL EXCISE, LUDHIANA VERSUS AMBIKA OVERSEAS [ 2011 (7) TMI 980 - PUNJAB 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. Division Bench of this Tribunal in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant availed cenvat credit of service tax paid on invoices raised by M/s Nicco Park and Resorts Ltd. towards the sales commission, which accordingly to the show-cause notice, did not qualify as eligible input service. 2. The Adjudicating Authority disallowed the Cenvat credit on input services amounting to ₹ 1,27,558/- and confirmed the demand of Central Excise duty under Rule 14 of Cenvat Credit Rules, 2004 read with the provision to Section 11A (10) of the Central Excise Act, 1944, along with applicable interest and also imposed equal amount of penalty under Sub-Rule 2 of Rule 15 of Cenvat Credit Rules, 2004 read with the provision to Section 11AC of the Central Excise Act, 1944. An option to pay reduced penalty @ 25% was also giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f.03.02.2016. He vehemently submitted that the Explanation inserted under Rule 2 (l) w.e.f. 03.02.2016, has the retrospective effect so as to cover the period upto 03.02.2016. In support of his submissions, he relied upon the following decisions : (i) 2016 (335) ELT 660 (Tri.-Ahmd.)-Essar Steel India Ltd. Vs. CCE & ST, Surat I ; (ii) 2019 (28) GSTL 309 (Tri.-Mumbai) - Reliance Industries Ltd. Vs. CCEx. & ST, (LTU, Mumbai ; (iii) 2018 (363) ELT 1172 (Tri.-All.) - Simbhaoli Sugar Ltd. Vs. CCEx., Meerut II ; (iv) 2016 (41) STR 1004 (Tri.-Del.) - Carrier Airconditioning & Refrigeration Ltd. Vs. CCEx., Gurgaon ; (v) 2017 (50) STR 37 (Tri.-All) - CCEx. & S.Tax, Meerut II Vs. Dwarikesh Sugar Industries Ltd. ; (vi) 2017 (3) GSTL 137 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E,Raipur Vs. M/s Drolia Electro Steel Pvt. Ltd. (ii) 2016-TIOL-1959-CESTAT-DEL : CCE & ST Vs. ZYG Pharma Pvt. Ltd. (iii) 2016-TIOL-1967-CESTAT-HYD : M/s Ultretech Cement Ltd. Vs. C & CCEx. (iv) 2017 (49) STR 84 (Tri.-Hyd.) : CC,CE & ST Vs. Sri Sai Sindhu Industries Ltd. 5. Ld.D.R. for the Revenue, submitted that the credit availed by the appellant-asessee being sales commission in nature, does not qualify as eligible input services credit as per the judgement of the Hon'ble High Court of Gujarat in the case of M/s Cadila Healthcare Ltd. as reported in 2013- TIOL-12-HC-AHM-ST. He further submitted that the cenvat credit has been rightly disallowed and the impugned order should be upheld and the appeal filed by the appellant assesse be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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