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TMI Blog2016 (10) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... ice' under Rule 2(l) of the Cenvat Credit Rules, 2004. Denial of credit is not justifiable - the decision in the case of BHARAT FRITZ WERNER LTD. Versus COMMISSIONER OF C. EX., BANGALORE [2011 (2) TMI 1276 - CESTAT, BANGALORE] relied upon. Insurance service - no statutory obligation for such cover and it is for personal consumption of the employee - Held that: - Statutory obligation is only an indicator to show the legal necessity of such insurance to the employees. In terms of the contractual arrangement, the appellant have to take such insurance cover for the Japanese employees. Prior to amendment of the cenvat credit Rules in 2011 there is no specific bar/exclusion in the definition. Accordingly, the appellants are entitled for credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of installation of machinery and other projects - Held that: - the contributions of these personnel has direct nexus to the manufacture and sale of the final products by the appellant/assessee. The service tax paid towards accommodation of these experts are rightly covered by the ‘input service' in terms of Rule 2(l) of Cenvat Credit Rules, 2004 - credit eligible. CENVAT credit allowed on all services except on family insurance and club services availed by Directors - The demand on these credits is restricted to normal period - penalties set aside - appeal dismissed - decided against Revenue. - E/60198, 60199, 60414/2013-(DB) - Final Order No. A/61094-61096/2016-EX[DB] - Dated:- 5-8-2016 - Mr. Ashok Jindal, Member (Judicial) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the context of their relation directly or indirectly to the manufacture and clearance of final products. He held that the construction service received by the appellants resulted in the creation of capital asset which are immovable properties and hence there is no nexus between the inputs service' and the manufacturing activity. We note that the original authority has erred in applying provisions of Rule 2(l) of the Cenvat Credit Rules, 2004. As mentioned above, during the relevant time the definition clearly covered, by inclusive clause, input service in relation to setting up, modernization, renovation or repair of the factory. The services received by the appellants squarely fall under this category. We find no merit in the finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... z Werner Ltd, 2011 (22) STR 429 (Tri. Bang). We find no merit in the impugned order on this issue. 5. The Cenvat Credit has been denied to the appellants for service tax paid on insurance service (medical claim, life insurance). These services were with reference to experts from Japan deputed by their parent company to provide technical assistance and training in their unit in India. We find that the original authority has denied cenvat credit on insurance cover for the employees from Japan on the ground that there is no statutory obligation for such cover and it is for personal consumption of the employee. We find that the said reasoning is not legally tenable during the material period. Statutory obligation is only an indicator to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. 2009 (13) STR 178 (Tri. Ahmd.) The denial of credit is upheld. 7. The appellants contested the denial of various credits on the question of time bar also. It is an admitted fact that the cenvat credit has been dis-allowed to the appellant mainly with reference to insurance for family members and club services availed by the directors. These relate to matter of interpretation with reference to Cenvat Credit Rules, 2004. No mala-fide intention can be attributed to the appellant in availing such credits. There is no case for suppression of fact. The definition of Input Services' in Cenvat Credit Rules, 2004 itself has undergone many changes, even with reference to credit on insurance service etc. As all credits taken have been r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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