2014 (1) TMI 1503 - AT - Service Tax

Disallowance of CENVAT Credit - Insurance servicev - Held that - The demand arose disallowing Cenvat credit availed by appellant in respect of the insurance service availed. Adjudication order makes clear how the insurance service was related to insurance covering issue of plant and machinery and inventories. Such coverage cannot be said to be not in relation to manufacture - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal and disposed of the stay application. Disallowance of Cenvat credit for insurance service related to plant and machinery was overturned. Penalty and interest were also set aside.