Case Law Details
Principal Commissioner of Central Excise Vs Himadri Speciality Chemical Limited (Calcutta High Court)
Calcutta High Court held that cenvat credit of service tax paid to the commission agent is available, as the commission so paid is included in the assessable value of the final product.
Facts- An audit was conducted on the respondent for the period from April, 2014 to March, 2015 and the appellant noticed that the respondent has availed and utilized input credit of service tax against the commission paid to various service providers who are acting as commission agents. The department noticed that the respondent had entered into agreement with those agents for selling their goods who had raised bills merely for commission for sales and it was so mentioned in the bills under the head “Description”. Thus, the Department was of the prima facie view that the role of the commission agent cannot be treated as input service and credit cannot be availed by the respondent.
It was further alleged that the respondent deliberately suppressed material facts from the Department to evade payment of tax. These allegations led to issuance of show-cause notice dated 04.11.2016 calling upon the respondent to show cause as to why the CENVAT duty amounting to Rs. 3,99,07,593/- (including Cess) for the period from October, 2011 to February, 2016 shall not be confirmed and recovered from the respondent with interest and penalty as per Rule 14 of the CENVAT Credit Rules, 2004 read with Sections 11A(4), 1 1AA and 1 1AC of the Central Excise Act, 1944 (the Act).
The adjudicating authority confirmed the proposal in the show-cause notice and imposed penalty. However, tribunal allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
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What is the latest status of Cedilla Health Care case and Ambika Overseas case in Supreme Court .
Has the Himadri Speciality judgement of Calcutta HC reached finality ? My client is in WB and falls under the jurisdiction of Calcutta HC