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TMI Blog2024 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... credit as input service . Being a mixed question of fact and law, it was felt by the Commissioner (Appeals) with an intent to do justice between the parties that a verification of facts may be required before deciding the legal point, instead of summarily accepting or rejecting them. Hence the remand of the matter by the Commissioner (Appeals) for examining the facts and deciding the same based on the CENVAT Credit Rules, 2004 cannot be faulted. The Appellant is agreed upon that the general insurance business which stood specified in Rule 2(1)(BA) of CENVAT Credit Rules 2004 is applicable not for capital goods only. The definition of input service as per Rule 2(l) ibid, covers not only the services used directly or indirectly in or in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst Order in Appeal No. 11/2023 dated 17.1.2023 passed by the Commissioner of GST Central Excise (Appeals II), Chennai. 2. Brief facts of the case are that the appellant is providing Information Technology Software Service, Sponsorship Service, Consulting Engineer Services, Online Information and Data Services etc. During audit, it appeared that the appellant had availed ineligible CENVAT credit on the service tax paid on various insurance services and hence Show Cause Notices and statement of demands were issued to them proposing to recover the ineligible credit availed by the appellant. After due process of law, the original authority allowed CENVAT credit availed on marine insurance but disallowed CENVAT credit availed on the premium pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of the CENVAT Credit Rules, 2004 and hence the extended period could not be evoked and penalty could not be imposed as a matter of routine. He referred to the Tribunal s decision where it was held that input service relating to general insurance service qualified for input service tax credit. He hence prayed that the impugned order may be set aside and consequential relief be granted to the appellant. 4. Revenue, on the other hand, has stated that it was the appellant who in their reply to the Show Cause Notice had stated that they have a business establishment and were engaged in the development of information technology services which statutorily required the Appellant to cover certain employees statutorily under the Workmen Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant that the general insurance business which stood specified in Rule 2(1)(BA) of CENVAT Credit Rules 2004 is applicable not for capital goods only. The definition of input service as per Rule 2(l) ibid, covers not only the services used directly or indirectly in or in relation to the manufacture of the final product but also includes activities related to business. The learned Commissioner (Appeals) has himself extended credit of service tax paid on group insurance of employees and their families prior to 01.04.2011. The CENVAT Credit Rules, 2004 was introduced by superseding the CENVAT Credit Rules, 2002 and Service Tax Credit Rules, 2002, with the object to extend credit of service tax and excise duty across goods and services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service . (emphasis added) Credit of service tax paid on insurance policies post 01.04.2011, though restricted, would hence continue to be eligible for being taken as credit, if they are used in relation to the business of manufacturing and are not for personal use or consumption of any employee. 7. I find that the dispute involves interpretation of the statutory provisions of the CENVAT Credit Rules, 2004 involving the definition of input service and does not involve mis-declaration, with intention to evade payment of duty. This is also clear from the fact that the matter is being remanded by the Commissioner ((Appeals) for verification of facts in consonance with the law. Hence the extended period could not have been evoked nor penalty c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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