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2018 (10) TMI 626 - AT - Central ExciseCENVAT Credit - Product Liability & product Recall Insurance Policy in respect of goods manufacture and sold by appellant - whether the appellant eligible is for Cenvat credit in respect of Service Tax paid on Insurance services of “Product Liability & product Recall Insurance Policy”? Held that:- As per the facts of the case the Product Recall Insurance Policy is taken by the appellant, as per condition of sale of the goods, without the said condition the goods cannot be sold to customer, the Product Recall Policy is pre-decided before supply of the goods. Therefore, it cannot be said that the Product Recall Policy Expenses is a post removal expenses, once it is pre-determined the goods can be supplied only after the Product Recall Policy is taken then it becomes part of cost of the final product, during the manufacturing of the same. In the present case the Product Recall Policy expenses is born for the purpose of security of the goods. Therefore, for his reason also the service falls under the definition of input services. Credit allowed - appeal allowed - decided in favor of appellant.
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