Custom, Excise & Service Tax Tribunal
M/S. Mitsubishi Heavy Industries vs Cce, Chennai Iii on 28 October, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/40782/2016
(Arising out of Order-in-Appeal No.58/2016 (CXA-I) dated 8.3.2016 passed by the Commissioner of Central Excise (Appeals I), Chennai)
M/s. Mitsubishi Heavy Industries Appellant
Vs.
CCE, Chennai III Respondent
Appearance Shri S. Muthuvenkataraman, Advocate for the Appellant Shri B. Govindarajan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 28.10.2016 Final Order No. 42044 / 2016 Reading of para 21 of the adjudication order discloses that the sales agent whose services were hired by the appellant was booking orders for the appellant and sales so booked are confirmed by the customers for execution.
2. When such a finding could be noticed by learned adjudicating authority, there is no warranting circumstance to deny CENVAT credit of the service tax paid for hiring the services of the sales commission agent.
3. The activity of sales promotion being covered by Rule 2(l) of the CENVAT Credit Rules, 2004, appellant is entitled to CENVAT credit of the service tax paid as above. This view is supported by the decision of the Honble High Court of Punjab and Haryana in the case of Commissioner of Central Excise, Ludhiana Vs. Ambika Overseas reported in 2012 (25) STR 348 (P&H).
4. In the result, appeal is allowed.
(Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2