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TMI Blog2023 (2) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... ement for availment of CENVAT credit for those entities in contradistinction with the entitlement of service tax assessees. It is on the claim of entitlement, arising from direct or indirect use in manufacture and certain related services deployed in particular contexts, that these decisions had been rendered. Rule 2 of CENVAT Credit Rules, 2004 factors both the provider and the service; for manufacturers, the sole factor is association with manufacturing process. Accordingly, the issue for consideration is utilization of impugned input service by a provider for rendering output service to a recipient. The decision in EMERSON EXPORT ENGINEERING CENTRE VERSUS COMMISSIONER OF CENTRAL EXCISE [ 2016 (9) TMI 1134 - CESTAT MUMBAI] , ema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of family members and dependents under the mediclaim policies disentitled the premium thereof from being input services in rule 2 of CENVAT Credit Rules, 2004. The appellant, in response, intimated that credit of ₹ 27,95,006 paid as tax on premium had been availed between April 2006 and March 2011 of which ₹ 9,28,935 pertained to policies for the first two years and ₹ 17,56,369 for the three years thereafter covering employees and families, in addition to ₹ 1,09,702 which were policies exclusively covering employees; distinction, and submissions thereon too, was drawn according to the two product genres. Though one category of policies for the first two years, and akin to that for the other three years, covered e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 556 (Tri. - Bang.)]. 4. According to Learned Counsel for the appellant, denial of credit of ₹ 17,11,314 relating to floater policies was inappropriate inasmuch as the coverage was offered for a single premium. Reliance was placed on the decision of the Tribunal in BNY Mellon International Operations (I) Pvt Ltd v. Commissioner of Central Excise, Pune III [ 2016 (45) STR 116 (Tri.-Mumbai) ] and in PTC Software (India) Pvt Ltd v. Commissioner of Central Excise, Pune III [ 2014 (35) STR 632 (Tri.-Mumbai) ]. Insofar as the denial of credit of ₹ 6,08,770 pertaining to policies covering dependent family members is concerned, it was contended that the decision of the Larger Bench of the Tribunal in Reliance Industries Ltd v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Sundaram Brake Linings v. Commissioner of Central Excise, Chennai-II [2014 (34) STR 583 (Tri.-Chennai)] 7. On scrutiny of the rival submissions, it is seen that reliance has been placed by both sides on decisions arising from dispute on availment of CENVAT credit by central excise assessees. There is a substantial difference between the entitlement for availment of CENVAT credit for those entities in contradistinction with the entitlement of service tax assessees. It is on the claim of entitlement, arising from direct or indirect use in manufacture and certain related services deployed in particular contexts, that these decisions had been rendered. Insofar as providers of output service is concerned, (l) input service means ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertained to usage, directly or indirectly, in manufacture or business activities related to manufacture that may not be of much assistance in the context of a separate, and simpler, definition for service tax assessees and which, necessarily, acknowledges that no service is visibly absorbed into a downstream service for being subjected to the test of nexus envisaged for manufactured goods. The decision in re Emerson Export Engineering Centre, emanating from conceding ineligibility for CENVAT credit, does not offer precedent. Likewise, the decisions relied upon by the lower authorities to discard the inclusion in cost argument drew upon a benchmark adopted to resolve the dispute in relation to input service for manufacturer. 9. It w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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