Cenvat Credit on Sales Commission to Agents Admissible: CESTAT

CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has ruled that "CENVAT credit on sales commission paid to agents is admissible." The tribunal observed that sales commission paid to agents for procuring orders and promoting sales falls under the definition of "sales promotion," which is an eligible input service under the CENVAT Credit Rules. This ruling provides clarity and relief to manufacturers by confirming their entitlement to claim CENVAT credit on such commission expenses, thereby reducing their overall tax liability.