CENVAT Credit eligible on Sales Commission

Federal Mogul TRP (India) Ltd Vs Commissioner of Central Tax (CESTAT Bangalore) We find that input service as defined under Rule 2(l) of CENVAT Credit Rules, 2004 explicitly includes activity of sales promotion and the explanation to Rule 2(l) of CENVAT Credit Rules, 2004 inserted by Notification No.2/2016-CE(NT) dated 3.2.2016 holding that sales promotion includes services by way of sale of dutiable goods on commission basis. We also find that this explanation added by way of amendment is declaratory in nature and is applicable retrospectively as held in the decision in the case of Essar Stee...