Case Law Details
L & T Constructions Equipment Ltd Vs Commissioner of Central Tax (CESTAT Bangalore)
CESTAT Held that services of sales commission service don’t qualify as input service and accordingly Cenvat Credit on the same not available.
Facts-
During the course of an investigation, it was observed that the appellants were availing credit of service Tax on the sales commission paid by them to M/s L&T Ltd, who were marketing their products in India, as per Sole selling Agreement entered in to with them; It appeared that the activity of sales agency carried out by M/s L&T is not an input service and that the appellants have contravened the provisions of Rule 3 of CENVAT credit Rules, 2004 read with Rule 2(l) ibid.
The allegations in the Show Cause Notice were confirmed by Order-in-Original dated 26-02-2010.
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