AMBIKA OVERSEAS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) APPLICANTS filed this application for waiver of pre -deposit of duty of Rs. 1,96,635/ - and penalty of Rs. 10,000/ -.

(2.) Finding of the Commissioner (Appeals) is that the Applicants availed credit during the period October, 2006 to March, 2007 on service tax paid to the overseas commission agent on the overseas commission which is not input service within the meaning of "Input Service" as defined under Sub -rule (1) of Rule 2 of CENVAT Credit Rules, 2004. The Commissioner (Appeals) proceeded on the basis of Board's Circular Letter F. No. B -154/06 -TRU, dated 19 -4 -2006. Learned Advocate drew attention of the Bench to the Board's Circular F. No. 345/1/2008 -TRU, dated 27th June, 2008 wherein it has been clarified that the service tax paid under Section 66A is available as "input credit" under CENVAT Credit Rules, 2004 provided the said services are used as input services by the manufacturer or producer of final products or a provider of output taxable service. The main contention of the learned D.R. is that tax paid on the overseas commission by the Applicant is not input service used in the manufacture of final product. In any event, tax paid on the overseas commission is related with the goods manufactured by the Applicants and, therefore, prima facie, it appears that the Applicants are eligible to avail credit. In view of that pre -deposit of duty and penalty is waived till the disposal of appeal. Stay application is allowed.