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TMI Blog2016 (8) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court of Delhi in the case of DSCL Sugar Vs. CCE, Lucknow [2012 (12) TMI 830 - CESTAT NEW DELHI], the credit of the insurance services is allowed. Cenvat credit - repair and maintenance of guest house - Held that:- the guest house is located right next to the factory premises. It is not the case of the Revenue that these services are used for personal consumption of the employees. The fact that the guest house is located right next to the factory implies that it is used in relation to the manufacturing activity. Therefore, the credit of repair and maintenance services of the guest house is allowed. - Decided in favour of appellant - Appeal No. E/1835 to 1841/11 - Final Order Nos. A/89143-89149/2016-WZB/SMB - Dated:- 3-8-2016 - Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o March, 09 7-12-2009 Insurance Service 7. E/1841/11 April, 07 to March, 09 April, 09 to March, 2010 10-1-2011 27-4-2010 Repairs Maintenance of Guest House, Painting, Water proofing, plastering. 2. Learned Counsel for the appellants argued that credit of maintenances of Barges and Tugs and insurance services has been allowed in their own case by the Tribunal vide Order No. A/634-638/14/SMB/C-IV dated 11.3.2014. She further argued that credit of Service Tax paid on Tugs, Port Services and Shipping fees paid by the appellant has been allowed by the Tribunal in their own case Vide Order No. A/235-240/13/SMB/C-IV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel that all these are essential activities and the credit of the Service Tax paid on the said insurance policies would be admissible. It was argued that the Commissioner (Appeals) has relied on the decision of Hon'ble High Court of Delhi in the case of DSCL Sugar 2014 (34) STR 58 (Tri-Del), wherein Service Tax paid on insurance of transit of finished goods has been allowed as well as Service Tax paid on insurance of vehicle owned by the appellant has also allowed. 2.1.1 I find that insurance at various stages undertaken for safety of their stock of raw material and finished goods as the input service is taken in the ordinary course of business. 2.2 The learned Counsel argued that credit for repair and maintenance of guest h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tuated outside the factory premises. Further, the services in relation to consultancy has been availed by the appellant not for its manufacturing unit, but for its another unit, which is located outside the factory of manufacture of excisable goods. The Cenvat Credit Rules permit the manufacturer to take Cenvat credit of the service tax paid on the input services, which have direct/indirect nexus with the manufacture of the final product. In the present case, it is an admitted fact that the disputed services have not been used by the appellant for the intended purpose, i.e., in or in relation to manufacture of final product and also not related to the business activity of the appellant. Thus, I am of the considered view that the said servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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