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2016 (12) TMI 212 - AT - Central ExciseCENVAT Credit - Insurance & Auxilliary Services - input service under Rule 2 (l) of the CENVAT Credit Rules, 2004 - Held that: - The definition of input service after 01.04.2011 has introduced certain exclusions. Sub Clause (c) of the exclusion portion of the definition states that the services of life insurance, health insurance, etc., which are used primarily for personal use or consumption of any employee is not covered within the definition of input service - From the very object of keyman insurance it is evident that the service is availed for protecting the loss that may occur to the company in the event of death of the keyman. Needless to say that the Managing Director of the company falls within the category of keyman of the organization. In such circumstances the activity of insurance and auxiliary services availed for taking KIP cannot be said to fall within the exclusion portion of the definition. The KIP taken by the appellant is a pure financial step as per the requirement of various exigencies like repayment of loans, advances etc., which is intricately related to the financial aspect of manufacturing activity. On happening of contingency as the sum assured is paid to the company, it cannot be said that it is for personal consumption. The appellants are eligible for credit - Appeal allowed - decided in favor of appellant.
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