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TMI Blog2021 (9) TMI 1382X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid on various input services. During the period from October 2013 to March 2016, the appellant had availed cenvat credit of service tax paid on "Insurance on Business Credit Shield Policy". The said policy was aimed to secure the credit facility extended to the approved buyers, in the event of their insolvency or default in payment of the sale amount claimed by the appellant. Availment of cenvat credit by the appellant was disputed by the department on the ground that such service is not categorized as an 'input service', defined under Rule 2 (l) of the Cenvat Credit Rules, 2004. The department interpreted that the insurance policy taken by the appellant was not related to the manufacturing activity and since the same was availed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to the allegation of suppression made in the show cause notice, learned advocate submitted that since the SCN was issued based on the audit objections raised by the department, it cannot be said that the appellant was indulged into the fraudulent activities, with the intent to defraud the Government revenue. 3. On the other hand, learned AR appearing for Revenue submitted that the disputed insurance service was availed by the appellants in relation with post sale activities and since the said service was not used directly or indirectly, in or in relation to manufacture of final products and clearance of final products up to the place of removal, such disputed service should not be considered as input service and availment of cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 2(l) ibid has defined the term 'input service' to mean any service used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal. The said definition clause also provides the inclusive category of services, which can be considered as input services. The disputed service availed by the appellant is in relation to post sale activities, in the sense that if the buyer of goods manufactured by the appellant defaulted in making payment, then the insurance company as per the policy requirement, should compensate the appellant for realization of the sale proceeds. The policy note issue by the insurance company as indicated above clearly sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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