2018 (2) TMI 2 - AT - Central Excise

CENVAT credit - Reverse Charge Mechanism - service tax paid on the Product Insurance Services availed by him from a foreign country - denial on the ground of nexus - Held that - Reference can be made to Tribunal s decision in the case of M/s. Neo Foods Pvt Ltd. Vs Commissioner of Central Excise, Service Tax and Customs, Bangalore-II 2017 (1) TMI 151 - CESTAT BANGALORE , wherein, Product Liability Insurance were held to be covered by the definition of Input Services , so as to make the same as cenvatable - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Chennai allowed the appellant, engaged in manufacturing motor vehicle and cycle parts, to avail Cenvat credit of service tax paid on Product Insurance Services from a foreign country. The Tribunal referred to precedent decisions where Product Liability Insurance was considered "Input Services" eligible for credit, overturning the Revenue's denial of credit. Both appeals were allowed with consequential relief to the appellants.