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2015 (4) TMI 615 - AT - Service TaxDenial of CENVAT Credit - various insurance policies in respect of capital assets - Held that:- various insurance policies taken by the appellant falls into the category of Marine Hull Policy, Public Liability Insurance Policy, Standard Fire and Special Perils Policy, Burglary Standard Insurance Policy, Marine Cargo Open Policy, Industrial all Risks Insurance Policy, Marine War Insurance Policy, Money Insurance Policy and Contractors Plant and Machinery Insurance Policy. While Marine Hull Policy, Marine Cargo Open Policy and Marine War Insurance Policy pertain to tugs and barges used by the appellant in transportation of materials from the mother vessels to the jetty, the other insurance policies pertain to the insurance of the capital assets used within the factory except in the case of Contractors Plant and Machinery Insurance Policy. The nexus between the assets utilised within the factory is clearly discernible, the same cannot be said in respect of goods used outside the factory. As regards the tugs and barges in respect of which marine policies have been taken, this issue has been considered in the Vikram Ispat (cited supra) wherein it was held that there was no nexus between the impugned services with manufacture/clearance of goods; therefore, they are not input service on which the assessee could get benefit of credit of service tax. - Therefore, the eligibility to Cenvat credit on marine insurance policies taken in respect of tugs and barges is clearly not admissible. Appellant will not be entitled for Cenvat credit of service tax paid on Marine Insurance Policies taken in respect of the tugs and barges or materials brought in a ship or in respect of life or health or medi-claim insurance of the employees/families. Similarly, the appellant would not be entitled for the service tax paid on the contractors equipments. In respect of other assets, which are used by the appellant within its factory for the manufacturing activity, the appellant would be eligible for the credit of service tax paid on various insurance policies in respect of such assets. Therefore, the matter is remanded back to the adjudicating authority for ascertaining the entitlement of service tax paid in respect of items as discussed above and allow the same to the appellant - Decided against assessee.
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