9911796707
TMI Blog2017 (5) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing business, as no manufacturer would carry on manufacturing operations without insurance of plant & machinery, cash in transit, goods in transit, vehicles & computers, etc. against any loss due to accident, natural calamities, etc - credit allowed - decided in favor of assessee. - E/53979/2014-EX[DB] - FINAL ORDER No. 52904/2017 - Dated:- 11-4-2017 - Mr. Justice (Dr.) Satish Chandra, President and Mr. V. Padmanabhan, Technical Member Present Shri Dhruv Tiwari, Consultant from the appellant Present Shri Dharam Singh, DR for the respondent ORDER Per Justice (Dr.) Satish Chandra: The present appeal is filed against the Order-in-Original No. 001/14-15 dated 30.04.2014. The period of dispute is July 2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s whatsoever with the manufacture of final product are not eligible for Cenvat credit, we find that this finding of the Commissioner is contrary to the law laid down by the Hon‟ble Bombay High Court in the case of CCE v. Ultra Tech Cement (supra), wherein the Hon‟ble Bombay High Court while considering the eligibility of outdoor catering service for Cenvat credit, has in para 28, 29 and 30 held that - (a) the definition of input service is very vide and covers not only the services which are used directly or indirectly in or in relation to the manufacture of final products but also includes various services used in relation to the business of manufacture of final products, be it prior to manufacture of final products or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue s contention based on this judgment of the Apex Court that input service in order to qualify for Cenvat credit must be only those services which have nexus with the manufacture of final products is not correct as unlike the definition of input which is restricted to the input used directly or indirectly in or in relation to the manufacture of final products, the definition of input service not only means service used directly or indirectly in or in relation to the manufacture of the final products but also includes services used in relation to business of manufacturing. In view of this judgment of the Hon ble Bombay High Court the Commissioner s finding that a service for being Cenvatable must be used in or in relation to the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing operations unless he complies with the requirements of Section 38 of the Employees State Insurance Act, 1948. 10. Coming to the second ground on which the Commissioner has disallowed the Cenvat credit in respect of the insurance services, the Commissioner s view is that the amendment to Rule 2(l) of Cenvat Credit Rules, 2004 w.e.f. 1-4-2004 is a clarificatory amendment and hence, the amended provisions would have retrospective applications. The reasoning in this regard given by the Commissioner is the judgment of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. (supra) wherein the Tribunal has held amendment to Rule 2(k) of Cenvat Credit Rules, 2004 by adding Explanation-II to be of clarificatory nature. But the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) S.T.R. 444 (Kar.) and CCE, Bangalore v. Micro Labs Limited reported in 2011 (24) S.T.R. 272 (Kar.), in respect of eligibility for Cenvat credit of employee‟s group insurance; had been cited before the Commissioner (as mentioned in para 11 of the order-in-original), he has either ignored these judgments and not given any findings as to how these judgments are not applicable or has made observations contrary for the judgments of the Tribunal/High Court and has decided the question of eligibility of various insurance services for Cenvat credit on the basis of his own interpretation of Rule 2(l) of Cenvat Credit Rules, 2004 observing that amendment to this rule w.e.f. 1-4-2011 is a retrospective amendment and the insurance services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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