2011 (2) TMI 786

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..... es, 2004 - authority holding that such insurance services are not connected with the manufacture or sale of cement or with other business activities as defined under Rule 2(1) of Cenvat Credit Rules, 2004 denied the credit - Held that:- the insurance policy has been used to cover expenses relating to pay-roll when the production is stopped on account of damages of machinery or plant and, therefore .....

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..... any interruption/destruction/break-down of any property or approach thereof used by the company for the purpose of their business, and the insurance covers risk of "loss of profit due to stoppage of business as a result of insurance peril like fire/riot/strike malicious and terrorist attack, damages etc." The original authority holding that such insurance services are not connected with the manuf .....

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..... ed by the department before the Hon'ble High Court and the same are pending. 5. Learned Advocate strongly supports the order of the Commissioner (Appeals) after reiterating the submissions in their cross-objection and after referring to the terms of insurance policy. 6.1 I have carefully considered the submissions from both sides and perused the records. 6.2 Rule 2(l) of the CENVAT Credit Rules .....

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..... e registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;" 6.3 A close reading of the above definition clearly indicate that the term "Input services" clearly include services relating to setting up, modernization, renovation or repairs of a factory. It inter-alia includes services received in connection with security. Insurin .....

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..... o business" in the inclusive limp of the definition of input services appears legal and reasonable. 8. No valid reasons have been adduced to interfere with the order of the Commissioner (Appeals). Appeal is, therefore, rejected. Cross objection which is merely in support of the order of the Commissioner (Appeals) is also disposed of. (Pronounced in Court)
Case laws, Decisions, Judgements, Or .....

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