Page 123 - GSTL_11th June 2020_Vol 37_Part 2

2020 ] MERINO INDUSTRIES LTD. v. COMMISSIONER OF CENTRAL EXCISE, NOIDA 209

2020 (37) G.S.T.L. 209 (Tri. - All.)
IN THE CESTAT, REGIONAL BENCH, ALLAHABAD
[COURT NO. I]
Shri Anil G. Shakkarwar, Member (T)
MERINO INDUSTRIES LTD.
Versus
COMMISSIONER OF CENTRAL EXCISE, NOIDA

Final Order No. A/71970/2019-SM(BR), dated 9-12-2019 in Appeal
No. E/71197/2018-EX(SM)
Cenvat credit of Service Tax - Tour packages provided to dealers of
manufacturer as sales promotion - Possible for manufacturer to pay in cash
expenses for tour, instead it provided tour packages - Tour packages can be
considered as dealer’s commission - Credit of Service Tax paid on tour packag-
es admissible - Rule 2(l) of Cenvat Credit Rules, 2004. [para 5]
Appeal allowed

CASES CITED
Gujarat State Fertilizers & Chemicals Ltd. v. Commissioner
— 2016 (41) S.T.R. 794 (Guj.) — Noted .................................................................................. [Paras 3, 5]
Simbhaoli Sugar Ltd. v. Commissioner — 2018 (363) E.L.T. 1172 (Tribunal) — Noted ........... [Paras 3, 5]
REPRESENTED BY : Shri Shiv Pratap Singh, Authorised Representative,
for the Respondent.
[Order]. - The appellant have submitted written submission. The said
written submissions were served to revenue on the last date of hearing. Today
revenue have also submitted their written submissions.
2. Brief facts of the case are that the appellant are engaged in the manu-
facture. They availed Cenvat credit of Rs. 1,17,583/- of service tax paid on tour
packages provided to their dealers. It appeared to revenue that tour packages
provided to dealers had nothing to do with the sales promotion and therefore,
Cenvat credit of service tax paid on tour packages to dealers was not admissible
as Cenvat credit of the appellant. The Original Adjudicating Authority confirmed
the demand and imposed equal penalty. The said order of the Original Adjudi-
cating Authority was upheld by Learned Commissioner (Appeals) through the
impugned order. Aggrieved by the said order, appellant are before this Tribunal.
3. The appellant had relied upon the decision of this Tribunal in the
case of M/s. Simbhaoli Sugar Ltd. v. Commissioner of Central Excise, Meerut-II re-
ported at 2018 (363) E.L.T. 1172 (Tri. - All.). It was submitted by the appellant
that Learned Commissioner (Appeals) has relied upon the ruling by Hon’ble Gu-
jarat High Court in the case of Gujarat State Fertilizers & Chemicals Ltd. reported at
2016 (41) S.T.R. 794 (Guj.). The said ruling is not applicable in the present case
because Hon’ble Gujarat High Court had only examined the issue of availability
of credit of service tax paid to sales agents. However, in the present case there are
no sales agents.
4. Revenue through their written submissions have submitted that im-
pugned order is sustainable.
5. I have carefully gone through the submissions from both the sides
GST LAW TIMES  11th June 2020  123