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2021 (9) TMI 1089 - CESTAT AHMEDABADCENVAT Credit - input services - Product Liability - Product recall insurance policy - HELD THAT:- The issue that whether the appellant is entitle for the Cenvat Credit in respect of product liability and product recall insurance policy has already been decided by this tribunal, in the case of M/S BHAVANI INDUSTRIES VERSUS C.C.E. & S.T. - RAJKOT [2018 (10) TMI 626 - CESTAT AHMEDABAD] where it was 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, and the credit is allowed. Credit allowed - appeal allowed - decided in favor of appellant.
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