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TMI Blog2025 (1) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... CE, Alwar Vs. Krish Icon [ 2018 (7) TMI 97 - CESTAT NEW DELHI] . In the said case, the learned Member considered the earlier decision of the Tribunal in the case of Essar Steel India Ltd. Vs. Commissioner of Central Excise ST, Surat-I [ 2016 (4) TMI 232 - CESTAT AHMEDABAD] , which was passed holding that Explanation to Rule 2(l) of the Rules inserted vide Notification No.2/2016-CX (NT) dated 03.02.2016) is declaratory in nature and retrospectively effective. Revenue also placed on record the latest decision of this Tribunal in The Commissioner, Central Goods Service Tax, Jaipur Vs. M/s.Bharti Hexacom India Ltd. [ 2023 (5) TMI 520 - CESTAT NEW DELHI] , where also the Department s appeal was rejected observing that the assessee is entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 3 of the Cenvat Credit Rules, 2004, as the service does not qualify as input service under Rule 2(l) of the Cenvat Credit Rules, 2004. 2.1 Show cause notice dated 03.10.2016 and a corrigendum dated 08.11.2016 were issued, proposing the recovery of inadmissible credit invoking the extended period of limitation. 2.2 The Adjudicating Authority vide Order-in-Original dated 30.03.2017 disallowed the Cenvat credit amounts and ordered recovery under Rule 14 of Cenvat Credit Rules, 2004 read with Section 73 of the Finance Act, 1994 along with interest under Rule 14 of Cenvat Credit Rules, 2004 read with Section 75 of the Finance Act, 1994, also imposed penalty under applicable provisions of Rule 15(2) of the Cenvat Credit Rules, 2004 read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Central Excise, Ludhiana v. Ambika Overseas (supra). The Hon ble Gujarat High Court held that this issue is concerned, the question is answered in favour of the Revenue and against the assessee. In this background, legislature explained the meaning of the sales promotion by inserting Explanation in Rule 2(l) of Rules, 2004 and declared that sales promotion includes services by way of sale of dutiable goods on commission basis. In other way, Explanation to Rule 2(l) of Rules says in clear terms that there is no bar on availment of the Cenvat credit on sales promotion service by way of sale of dutiable goods on commission basis. Further, by inserting the Explanation in the Rule 2(l), it has confirmed the Board Circular and resolved th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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