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2015 (9) TMI 1214 - AT - Service TaxDenial of CENVAT Credit - input services - Credit of Service Tax paid on transit insurance payment in respect of insurance of goods during transit from the factory to customers premises - Place of removal - Held that:- Sales are on FOR destination basis. Infact decision of this case support the case of the appellant. Further, I find that a similar issue came up before the Tribunal in the case of Suzuki Motorcycle (I) Pvt. Ltd. reported in [2015 (7) TMI 633 - CESTAT NEW DELHI] wherein this Tribunal has observed that merely because the appellant stand reimbursed part of the advertisement expenses from their parent company, does not mean that appellant would become disentitled for the service tax actually paid by them and this Tribunal allowed the cenvat credit on advertisement expenses which has been reimbursed by the parent company. In this case, insurance expenses have been paid by the appellant for transportation of the goods upto the place of buyer and same has been reimbursed by the buyer of the goods. Therefore, the facts of the case in hand are similar to the facts of Suzuki Motorcycle (PI) Pvt. Ltd. (supra). In these circumstances, I hold that appellant is entitled to take cenvat credit of insurance premium charges paid by them when there is no dispute that the goods were delivered at the customers place. - Decided in favour of assessee.
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