TMI Blog2009 (12) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of telephones installed at the residence of General Manager and Company’s guest house. Held that- the denial of Cenvat credit taken in respect of telephone services, in respect of telephone installed at the residence of the General Manager and at the Appellant’s guest house, the rest of the order upholding the cenvat credit demand by denying Cenvat credit in respect of marine inland transit insurance, money insurance for money in transit from bank to factory to & fro, follow up services in connection with installation of plant & machinery of captive power plant and insurance of personnel working in the factory for accident or loss and upholding the penalty on the Appellant, is set aside. - E/142/2008-SM (BR) - 6/2010-SM (BR)(PB), - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner vide order in original dated 23-2-2007, confirmed the Cenvat credit demand of Rs. 38,510/- along with interest and imposed penalty of Rs. 25,000/- on the appellant under Rule 15(1) of Cenvat Credit Rules, 2004. On appeal, the Commissioner (Appeals) vide impugned Order in Appeal No. 201/RPR-I/2007 dated 9-10-2007 upheld the Assistant Commissioner's order. It is against this order, that the present appeal has been filed by the appellant. 2. Heard both sides. 3. Shri K.K. Gupta, Advocate, the learned Counsel for the appellant, pleaded that the services of transit insurance for plant and machinery, insurance for money in transit from factory to bank to fro, and the insurance of the personnel working in the appellant's factory fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which goes into the costing and hence Service tax on insurance premium for plant and machinery would be admissible as Cenvat credit and that the Tribunal in the case of Millipore India Ltd. v. CCE Bangalore-II reported in 2009 (13) S.T.R. 616 (Tri.) = 2009 (236) E.L.T. 145 (Tri.-Bang.) has held that medical and personnel accident policy and group personnel accident policy are the items considered for costing of the final product in terms of CAS-4 and, therefore, these services have to be treated as services received in relation to the manufacture of final product and would be covered in the definition of input service. Shri Gupta also pleaded that one of the ground for denial of Cenvat credit in respect of transit insurance policy for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follow-up services" for installation of plant and machinery of captive power plant are also not in relation to manufacture of the finished goods and similarly, the telephone services in respect of telephones installed at the residence of general manager and the company's guest house cannot be said to have been used in or in relation to the manufacture of finished product. As regards the services of insurance of persons working in the Appellant's factory for injury in toss of life due to accident he pleaded that this insurance is In respect of workers supplied by the contractor who are not the employees of the Appellant. He, therefore, pleaded that cenvat credit in respect of these services had been rightly denied. 5. I have carefully cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it from the factory to the bank and back to the factory. I therefore, hold that service of insurance of money in transit is covered by the definition of "Input Service". 7. As regards the follow-up services, that same are business auxiliary services availed by the appellants in connection with installation of captive power plant. Since these services are in connection with installation of captive power plant and since the services in relation to setting up or modernisation are specifically by the definition of input service, I hold that these services are also eligible for Cenvat credit. 8. As regards the Service tax in respect of telephone services installed in I the residence of general manger and company's guest house, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of "input service" and Cenvat credit of Service tax is available. In view of this, I hold that appellants are eligible for Cenvat credit of Service tax on the insurance premium for the insurance of the personnel working in the factory. 10. In view of the above discussion, except for the portion of the impugned order upholding the denial of Cenvat credit taken in respect of telephone services, in respect of telephone installed at the residence of the General Manager and at the Appellant's guest house, the rest of the order upholding the cenvat credit demand by denying Cenvat credit in respect of marine inland transit insurance, money insurance for money in transit from bank to factory to fro, follow up services in connection with i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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