The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that sales commissions for promoting carbon black products qualify as sales promotion under Rule 2(l) of the Cenvat Credit Rules, 2004. This decision allows companies to claim input service credits for these expenses. The ruling set aside a 3.34 crore rupee demand and penalty, rejecting the government's claim that commissions were post-removal activities. The tribunal affirmed that such expenditures are directly linked to manufacturing and marketing operations.
