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TMI Blog2011 (8) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the course of audit of the records of the respondent M/s. Surani Ceramics it was noticed that they have availed cenvat credit of service tax paid on workmen s compensation (general insurance) on the amount of insurance paid to M/s. The New India Assurance Company Ltd. Proceedings were initiated to deny the cenvat credit on the ground that the input service was not used in relation to the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision is not correct. As regards Millipore India Ltd., he submits that in view of the decision of the Hon ble High Court of Gujarat in the case of M/s. Gujarat Heavy Chemicals Ltd., this stands overruled and also an appeal has been filed against the decision. 3. I have considered the submissions made by the learned DR. I have gone through the decision of the Hon ble High Court of Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of Bombay High Court in the case of Ultratech Cement could not be applied to the situation in the case of Gujarat Heavy Chemicals Ltd. since providing canteen facilities to the workers was mandatory and failure to do so to attracted penal conclusions. In the case of Coca-cola India Pvt. Ltd. reported in 2009 (15) STR 657 (Bom.) and in the case of Ultratech Cement Ltd., the Hon ble Bombay Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance premium for workmen s compensation (general insurance) can be considered as an activity related to the business. In case of an accident within the factory, the compensation has to be paid by the company in accordance with the law and this is obligatory. To fulfill this legal obligation, the assessee has taken insurance. Therefore it can be said that in this case the insurance premium is defin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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