M/S. Dalmia Chini Mills Ltd vs Commissioner Of Central Excise
- CitationExcise Appeal No. 2450 of 2012-Ex (SM)
Ratio decidendi
The rule this decision rests on
The appellant manufacturer is entitled to take Cenvat credit on Business Auxiliary Service in respect of commission paid to a commission agent for selling its goods, because the commission paid is an integral part of the manufacturing activity and, following the principle that services availed by a manufacturer of excisable goods in the course of its business qualify for credit, the credit cannot be denied.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-In-Appeal No. LTU/Dalmia Chini Mills/44/2012 dated 1/05/2012 passed by Commissioner of Central Excise (Appeals), New Delhi]
For approval and signature:
Honble Mr Ashok Jindal, Member (Judicial)
1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether Their Lordships wish to see the fair copy of the Order?
4 Whether Order is to be circulated to the Departmental authorities?
M/s. Dalmia Chini Mills Ltd. Appellants
Vs.
Commissioner of Central Excise Respondent
& ST, Delhi
Appearance:
Shri P K Sahu and Shri Shekhar Vyas, Advocates for the Appellants
Shri G R Singh, AR for the Respondent
CORAM:
Hon'ble Shri Ashok Jindal, Member (Judicial)
Date of Hearing /decision: 25.06.2015
ORDER NO. FO/ 52057/2015-Ex(SM)
Per Ashok Jindal :
The short issue involved in the matter is whether the appellant is entitled to avail Cenvat Credit on Business Auxiliary services for commission paid to the commission agent for selling their product in the market or not. In the case of CCE vs. Ultratech Cement [2010 (20) STR 577(Bom)], the Honble High Court of Bombay has held that any services availed by the manufacturer of excisable goods in the course of their business is entitled for credit. Admittedly, the commission paid by the appellant to the commission agent is integral part of their manufacturing activity, and therefore, appellant is entitled to take Cenvat Credit. In these terms, I do not find any merit in the impugned order. Same is set aside. Appeal is allowed with consequential relief, if any.
(Dictated and pronounced in the open court )
( Ashok Jindal ) Member(Judicial)
ss
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