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TMI Blog2018 (10) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... be applied for the software products which are supplied by the appellant. Further on analyzing the definition of input services, it can be seen that only those type of insurance services which fall under the category of life insurance, health insurance etc. which are availed for personal consumption are excluded from the ambit of the definition - These policies which are for covering the product liability in case of defect to the products supplied would definitely come within the inclusive part of the definition - credit allowed. CENVAT Credit - transit insurance policy - Held that:- The storage services are eligible only upto place of removal. So also outward transportation service is eligible only upto the place of removal. The inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of ₹ 7,73,832/- by disallowing the credit and ordered for recovery of the same along with interest and imposed penalties. In appeal, Commissioner (Appeals) allowed part of the credit to the tune of ₹ 3,05,687/- and disallowed the remaining credit. Hence this appeal. 2. On behalf of the appellant, ld. counsel Ms. Sridevi submitted that the input services, which are insurance services, are in the nature of errors of omission insurances which is in the form of product liability insurance which mainly focuses on any failure to perform in regard to the software products supplied by the appellant. If there is any defect in such goods, the appellant would be covered by liability of the insurance and would thus be absolved from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Since these transit insurance policies are necessary for the appellant to move the goods for providing the output service, the same are eligible for credit. 3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He submitted that both these insurance policies are availed by the appellant as a post-manufacturing activity which is outside the place of removal and therefore are not eligible for credit. 4. Heard both sides. 5. The first issue is with regard to the errors and omission policy taken by the appellant for indemnifying the errors / omissions or defects in the software products supplied by them. In the decision relied by the appellant, the Tribunal has allowed credit on product liability insurance. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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