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TMI Blog2018 (9) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax credit on various input services. Show cause notice was issued proposing to disallow the credit which after adjudication allowed credit on certain service. The appellant filed appeal before Commissioner (Appeals) against the disallowance of credit on various services. Vide the order impugned herein, the Commissioner (Appeals) also has disallowed credit on certain input service. Hence the appellant is now before the Tribunal. 2. On behalf of the appellant, ld. counsel Shri G. Mani submitted that the services involved are outward transportation/courier service, audit fee/rent-a-cab service, TDS entry, insurance service, housekeeping service, consultancy service, book adjustment / manpower and other services. He explained that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance as well as employees insurance which is in the nature of covering the gratuity amount payable to the employees. He submitted that the exclusion clause in the definition of input services excludes only such insurance services which are availed for the employees during the journey on leave travel. That these insurance services are to cover the risk of the manufacture with regard to the goods under transit, as well as the financial liability of the appellant for payment of gratuity to the employees. That this would fall within activities relating to finances of appellant and are within the inclusive part of the definition of input service and therefore eligible for credit. 2.4 The authorities below have observed that the housekeepin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such services were availed for calibration of the machines and requested for remand of the matter. 2.7 Under general category of other services, the authorities below have rejected the service tax credit on manpower supply agency service used for data entry. He submitted that the appellant would be able to produce such documents and requested for remand of the matter. 2.8 In respect of manpower for shivtej, he submitted that the appellant has already reversed and is not contesting the same. In respect of maintenance and repair services, he submitted that the said services were actually works contract service which were availed by the appellant for repair, renovation work of the premises and would be eligible for credit. However, the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjustment (calibration service). Therefore, credit on these services has been rightly disallowed. 3.5 With regard to other services like manpower use for data entry, the appellant having not produced any document is not eligible for credit. 4. Heard both sides. 5. The first issue for consideration is whether the appellant is eligible for credit availed on courier service used for sending free samples to the buyers abroad. Although the said service has been shown in the show cause notice and the orders as outward transportation, the appellant has produced invoices as discussed in the adjudication order to show that these service are availed by the appellant for sending the free samples to the buyer abroad. The documents show that the ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed credit on insurance service. It is seen that the appellant had availed goods transit insurance as well as employees insurance. Needless to say that the goods transit insurance is directly related to the manufacturing activity and therefore eligible for credit. With regard to employees insurance, which is in the nature of covering the risk of gratuity amount, I am of the view that the same would not fall within the exclusion clause. The manufacturer avails such insurance to cover the financial risk that he would have to face in case of payment of gratuity to employees and therefore is directly related to manufacture. I therefore allow the credit in respect of insurance service. 5.5 The authorities below have rejected the credit in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under heading, other services, the appellant has availed manpower used for data entry. However, he has not produced any invoice before the adjudicating authority. Since the service is connected with accounting and falls within the inclusive part of input services, I am of the view that the said services would be eligible for credit if the appellant produces the invoices disclosing the payment of service tax. The said issue is also remanded to the adjudicating authority. 5.9 The credit in respect of manpower (shivtej) is not contested by the appellant and therefore upheld. The appellant is also not contesting the credit on works contract service used for repair and maintenance. 5.10 The ld. counsel has also argued that during the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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