2018 (2) TMI 1730 - AT - Central Excise

CENVAT credit - input services - various insurance policies during the period 01.04.2011 to 31.10.2014 - Held that - the service tax paid on insurance policies held to be Input Service within the definition of Rule 2 (l) of CCR 2004 post amendment and accordingly held admissible to credit - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
1. Entitlement to avail Cenvat credit of service tax paid on insurance policies.

Analysis:

The appeal was filed against an order-in-appeal passed by the Commissioner (Appeals) of Central Excise and Service Tax-Vadodara. The main issue in the appeal was whether the appellant was entitled to avail Cenvat credit of service tax paid on various insurance policies during a specific period. The appellant argued that they should be allowed to claim credit for the service tax paid on insurance policies, such as Marine Insurance Policy for inward transit of goods and group accident policy for workers. The appellant relied on previous judgments of the Tribunal in cases like Granules India Ltd., Sarita Handa Exports (P) Ltd., Fiem Industries Ltd., and Talent Maximus India Pvt. Ltd. to support their claim.

The Revenue, represented by the Ld. AR, supported the findings of the Commissioner (Appeals). However, the Tribunal, after considering the arguments from both sides, held that the service tax paid on the insurance policies in question qualified as Input Service under Rule 2(l) of CCR, 2004, post-amendment. The Tribunal referred to its previous judgments and concluded that the appellant was indeed entitled to avail the Cenvat credit for the service tax paid on the insurance policies. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief as per law.

In conclusion, the Tribunal ruled in favor of the appellant, allowing them to avail the Cenvat credit for the service tax paid on the insurance policies in question based on the precedent set by previous judgments of the Tribunal.