Manufacturer Wins Comprehensive Cenvat Credit Claim for Franchise-Related Services Under Rule 2004 Input Service Provisions

CESTAT held that the appellant is eligible for Cenvat credit in three key aspects: (1) outward transportation to franchisee outlets as place of removal, (2) sales commission paid to franchisees for product marketing, and (3) commercial rent for retail outlets. The tribunal determined that services related to goods movement, sales promotion, and storage up to the point of removal are integral to manufacturing process. The input service credits were consequently allowed, recognizing the broader interpretation of input services under Cenvat Credit Rules, 2004. The appeal was ultimately allowed in favor of the appellant, affirming the eligibility of input service credits across multiple service categories. .....

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