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TMI Blog2018 (9) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery used for providing the output service - In Rule 2(l) of the Cenvat Credit Rules, 2004 it is seen that such services are covered within the definition under the ‘means’ as well as ‘inclusive’ portion. Whether the adjudicating authority was right in denying such cenvat credit by applying the exclusion providing under sub –clause ‘(BA)’? - Held that:- The exclusion clause is specifically applicable only in respect of general insurance service for motor vehicles which are not being used as capital goods - It cannot be said that the exclusion will be applicable to the insurance for the general plant, machinery which is used for providing the output service. Credit allowed - appeal allowed - decided in favor of appellant. - S.T. A.N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as Sh. P. Juneja, ld. AR for the Revenue. 4. Ld. Advocate submitted that the adjudicating authority has denied cenvat credit in respect of certain general insurance services which were availed by the appellant by way of various equipments, plant and machinery used by them in providing the output service. He has wrongly interpreted the exclusion clause (BA) of the Cenvat Credit Rules 2(l). Even though the rule excluded cenvat credit on certain general insurance services with reference to motor vehicle, the adjudicating authority has wrongly interpreted the same as applicable to all the insurance services. Appellant has used these insurance for the plant, machinery etc. which were used by them in providing output service. This c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as inclusive portion. Coming to the question whether the adjudicating authority was right in denying such cenvat credit by applying the exclusion providing under sub clause (BA) , the said exclusion clause is reproduced below: (BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by- (a) A manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person; or (b) An insurance company in respect of a motor vehicle insured or reinsured by such person; or] It is seen that the above exclusion clause is specifically applicable only in respect of general insurance service for motor vehi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the impugned order is not sustainable in law and I set aside the same and allow the appeal of the appellant with consequential relief, if any . 9. In the above decision the Tribunal has expressed the opinion that general insurance services for various activities used in connection with business can be allowed. By following the above order of the Tribunal, I find that the denial of credit is not justified. 10. The demand for reversal of service tax for a small amount of ₹ 2400/- is not being pressed by the appellant. The said tax has already been paid alonwith interest. Under the circumstances, I find no reason to impose the penalty on such small amount. 11. In the result, impugned order is set aside except the portion a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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