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2024 (1) TMI 180 - AT - Central ExciseCENVAT Credit - general insurance service related to building, plant and machinery, equipment, computers, workmen compensation, group accident policy, transit insurance etc. - HELD THAT:- It is found that the cenvat credit on general insurance service availed by the manufacturing unit has been considered time and again in various judgments. Reliance can be placed in COMMISSIONER OF CENTRAL EXCISE, BANGALORE VERSUS MILLIPORE INDIA (P.) LTD. [2011 (4) TMI 1122 - KARNATAKA HIGH COURT] where it was held that 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. Reliance also placed in M/S HINDUSTAN ZINC LTD VERSUS COMMISSIONER OF CENTRAL EXCISE, JAIPUR [2014 (7) TMI 485 - CESTAT NEW DELHI] where it was held that Group insurance of the employees against accident or sickness is the requirement of Section 38 of the Employees State Insurance Act, 1948, which a manufacturer has to comply with and accordingly, this service would have to be treated as a service used in or in relation to the manufacture of final products whether directly or indirectly, as a manufacturer would not be allowed to carry on manufacturing operations unless he complies with the requirements of Section 38 of the Employees State Insurance Act, 1948. From the above judgments it can be seen that in many cases the identical issue has been considered and it has been consistently held that the service tax paid on the general insurance service is admissible as cenvat credit as the service is directly or indirectly related to manufacture of the final product in the appellant's factory. Accordingly, the issue is no longer res integra. The demand is not sustainable - Therefore the impugned order is set aside - Appeal is allowed.
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