TMI Blog2012 (8) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... sales are made on FOB basis, they will produce evidence to that effect and further, that will not be taken into account for calculation of eligible service tax - matter is remanded to the original authority to finalize quantum of ineligible service tax in respect of ‘transit premium - E/2733/2010 - 403/2011 - Dated:- 21-6-2011 - Shri B.S.V. Murthy, J. REPRESENTED BY : Shri K. Dayanand, C.A., for the Appellant. Ms. Sabrina Cano, Superintendent, for the Respondent. [Order]. This appellant is engaged in the manufacture of wood working machines. The dispute has arisen as to whether the appellant is eligible for credit on service tax paid by them on Group Health Insurance policy taken for employees and their families an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as expenditure relating to business activities. However, I am inclined to agree with the learned DR in her submission that transit is nothing but part of transportation cost. Therefore transportation cost is to be made applicable. 7. In this case, the period involved is during August 2008. In the subsequent amending definition of input service, the credit was restricted to up to the place of removal only. On going through the insurance policy, it is found that even though the policy covers domestic purchase, movement of goods for job work, imports, domestic sales, exports, etc., the premium paid is linked to domestic sales and exports only. This means, the appellant is liable to pay premium only on the domestic sales at 0.145% but cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... domestic purchase and job work which are clearly admissible. Further, if all the sales are made on FOB basis, they will produce evidence to that effect and further, that will not be taken into account for calculation of eligible service tax. In view of the above discussion, the matter is remanded to the original authority to finalize quantum of ineligible service tax in respect of transit premium . In view of the fact that the amount of service tax credit taken was reflected in the documents and further the issue is arguable and the issue of Group Health Insurance is already covered by decisions, I consider it appropriate that no penalty is imposable in this case. The penalty imposed on the appellant is set aside. The appeal is disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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