TMI Blog2014 (8) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... isposal. 2. Heard both sides and perused the records. 3. The appellants are engaged in the manufacture of wheels and components for Cars, Jeeps Tractors, Earth Movers and Construction Equipments and Air Suspension System falling under chapter 84 and 87 of the CETA 1985. The instant appeals were filed by the appellants against denial of cenvat credit on the input services on insurance , garden maintenance and clearing and forwarding services which are discussed below :- (i) Insurance : 3.1 The adjudicating authority disallowed the input service tax credit availed on the insurance in respect of the employees and marine insurance relating to export products.. It has been observed that except for group insurance fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of input service credit . Ld. Advocate submits that if the appellants are availing the credit on marine insurance, they are not eligible to avail the refund as per law. 3.4 After considering the submissions of both sides, I find that in view of the decision of the Tribunal in the case of U.G. Sugar Industries Ltd. (supra), denial of credit on marine insurance is also not sustainable. (ii) Garden Maintenance : 4. Regarding denial of credit on factory garden maintenance, the adjudicating authority observed that expenditure incurred for garden maintenance was not related to production activities but only for improving the aesthetic look of the premises and hence they are not eligible to avail cenvat credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of those laws. That apart, now the concept of corporate social responsibility is also relevant. It is to discharge a statutory obligation, when the employer spends money to maintain their factory premises in an eco-friendly, manner, certainly, the tax paid on such services would form part of the costs of the final products. In those circumstances, the Tribunal was right in holding that the service tax paid in all these cases would fall within the input services and the assessee is entitled to the benefit thereof. In that view of the matter, we do not see any infirmity in the order passed by the Tribunal. Accordingly, the substantial questions of law framed in this appeal are answered in favour of the assessee and against the revenue. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the said case, the Tribunal denied input service credit on garden maintenance. 4.4. I find that the decision of the Tribunal in the case of Stanadyne Amalgamations Pvt. Ltd. (supra), Grasim Industries (supra) and Sri Rama Vilas Services Ltd. (supra) relied upon decisions by Ld. A.R are single Member Bench decisions pertaining to the year 2011. In the case of TELCO Construction Equipment Co. Ltd. (supra), the Tribunal observed that the assessee should be required to establish integral connection between activity/service and business of manufacturing final product for the benefit of cenvat credit on the services. Clearing and Forwarding Services : 5. Regarding denial of credit on C F services, relating to export, the adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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