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2009 (7) TMI 568 - AT - Service TaxCenvat Credit- Input services- The assessee, a manufacturer, took Cenvat Credit of service tax on the insuarance premium in respect of (a) transit insurance of induction furnace and transformer, (b) group personal accidental policy and (c) group health guard policy of company staff. The Assistant Commissioner disallowed said credit on the ground that said services could not be said to be services used in or in relation to the manufacture. The Commissioner (Appeals) set-aside the order of the assistant Commissioner by holding that the said services were covered by the definition of ‘Input Service’ and hence Cenvat Credit had been taken correctly in respect of the same. In the light of the decision of Millipore India Ltd. v. CCE 2009 -TMI - 32592 - CESTAT, BANGALORE, Held that the definition of input has two limbs and second limb of the definition covers the activities relating to business and the list of the activities is not exhaustive. The insurance of the capital goods whether in the factory or in transit and similarly the group insurance of the workers and the staff is very much part of the business activity and every manufacturer or service provider has to use these services for his business. Therefore, the order of commissioner (Appeals) is upheld.
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