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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 ..... rvice 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 specifies that the policy offered by them to the appellant is towards realization of the insured debt in respect of the goods delivered to the buyers. Since, the disputed service availed by the appellant was not in relation to manufacture of the final products and does not fall under the inclusive part of definition of input service, such service cannot be considered as in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity 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 undertaking the post manufacturing activity, cenvat credit of service tax paid on such service was not available to the appellant. The show cause notice dated 07.04.2017 issued by the department was adjudicated vide order dated 27.03.2018, wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cenvat credit on such service is not in conformity with the statutory provisions. 4. Heard both sides and examined the case records, including the written note of submissions filed by both sides. 5. I have perused the policy document issued b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 specifies that the policy offered by them to the appellant is towards realization of the insured debt in respect of the goods delivered to the buyers. Since, the disputed service availed by the appellant was not in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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