2026-VIL-1754-CESTAT-KOL-CE
  1. Home
  2. 2026-VIL-1754-CESTAT-KOL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Cenvat credit of service tax paid on sales commission - Appellant sent goods to its depots on stock transfer basis under agreements with commission agents who procured orders, arranged dispatch and collected payments, and the Head Office distributed the credit of service tax on commission as Input Service Distributor - The Department alleged that services used beyond the stage of manufacture and clearance from the factory are not input services - Whether service tax paid on commission to agents for sale of goods through depots qualifies as input service and whether the credit distributed by the Input Service Distributor is admissible - HELD - Under Rule 2(1), any service used by the manufacturer, directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal is an input service. A depot is a place of removal as defined in Section 4(3)(c) of the CEA, 1944, and hence all services used in connection with the manufacture and sale of goods up to the depot are eligible for Cenvat credit - The services rendered by the commission agents were in connection with the sale of goods manufactured by the Appellant and the commission was paid in relation to such sale. Service tax paid on the commission qualifies as input service, and there is no infirmity in the availment of the credit distributed by the Input Service Distributor - The disallowance of credit along with interest and penalty is not sustainable, the impugned order is set aside, and the appeal is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?