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TMI Blog2021 (8) TMI 1366X X X X Extracts X X X X X X X X Extracts X X X X ..... f products manufactured by the appellant - the credit availed on the service tax paid on Contingent Liability Insurance is eligible. Marine Insurance Policy - only ground alleged for denying the credit is that there is no nexus between the input services and the manufacturing activity - HELD THAT:- The refund under Rule 5 can be claimed on the input services used for exports made under a particular quarter. In the present case, the period covered by the Marine Insurance Policy is from 1-7-2016 to 30-6-2017. The policy covers the risk of goods under transit for a period of one year. Usually carrier may hold a transit policy, which covers each consignment. The Marine Insurance Policy in the present case intends to indemnify the risk of the goods under transit belonging to the appellant. The discussion made by the Commissioner (Appeals) for denying the credit on this input service, is legally misplaced - the credit on Marine Policy is eligible. Thus, the disallowance of credit on Contingent Liability Insurance and Marine Insurance Policy cannot sustain. The impugned order to this extend is set aside - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... r (ii) used by the 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, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal; but excludes, - (A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surance". In the event of any hidden contingent, whereby any damage to a person or property is caused due to the use of the products or exposure, the insurance company indemnifies the appellant to pay up the liability. It is an insurance indemnifying the risk against the public, who use the products manufactured by the appellant. Though, the department has discussed the said policy in the name and nature of "Contingent Liability Insurance", it is, in fact, a "Public Product Liability Insurance". The policy defines "product" shall mean "all goods or products supplied by the insurer, together with containers, packaging and instructions supplied therewith." The insurance company indemnifies accidental injury to persons and accidental injury to tangible property which is used in connection with the business of the appellant. He submitted that such policies are necessary to indemnify the appellant in case of liabilities that may arise in the course of business. The Learned Counsel relied upon the decision in the case of M/s. Alstom T & D Ltd. v. Commissioner, LTU, Chennai reported in 2016 (41) S.T.R. 646 (Tri. - Chennai). The discussions made is rendered by this Tribunal in the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is beyond the "place of removal" can be claimed only as refund along with submission of proof of export of goods. The Learned Counsel submitted that the Marine Insurance Policy is for indemnifying loss of goods while in transit and also for covering the risk of the raw materials that are under transit. Such policy is essential for the appellant to conduct the business of manufacture and is directly connected to their manufacturing activity. He placed reliance in the decision of M/s. Gobind Sugar Mills Ltd. v. Commissioner of Central Excise & Service Tax, Lucknow reported in 2015 (38) S.T.R. 68 (Tri. - Del.). He prayed that the appeals may be allowed. 6. The Learned Authorised Representative Ms. K. Komathi supported the findings in the impugned order. 6.1 The first issue is with regard to the Contingent Liability Insurance/Public Product Liability Insurance. The features of this insurance policy have been explained in the previous paragraphs. It is noteworthy to mention that the exclusion clause in the definition of "input services" restricts the credit in respect of General Insurance in regard to only motor vehicles and Life Insurance Policies. There are insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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