2013 (2) TMI 280 - AT - Central Excise

Cenvat Credit - Input services - Cenvat credit in respect of insurance service of factory premises - Held that - In CENVAT Credit Rules, it is nowhere prescribed that input service credit is available only when service has been availed in the factory premises. Following the decision in case of IDEA CELLULAR LTD.(2011 (1) TMI 811 - CESTAT, NEW DELHI) that insurance of vehicles, laptop and insurance for cash during its transit from the cash collection centre to the bank can be treated as input service and is entitled for input service credit. - In favour of assessee

Summary

The Appellate Tribunal CESTAT MUMBAI allowed the appeal, granting input service credit on insurance services. The denial was based on the service not being availed in the factory premises, but the Tribunal ruled that such credit is not restricted to factory premises. Citing a precedent, the Tribunal held in favor of the appellant, setting aside the impugned order.