TMI Blog2012 (12) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... business would insure his plant and machinery, goods in storage, cash in transit and goods in transit if his sales are on FOR destination basis - services are integrally connected with the manufacturing business of an assessee and the same have to be treated as “activities relating to business” and hence covered by the definition of input service - appellant plead that the lower authorities decided the case against them without giving them opportunity to produce these documents - Since these documents go to the root of the matter, the miscellaneous application filed by the appellant for admitting this additional evidence is allowed - appellant’s claim regarding Cenvat credit can be examined with regard to these documents only by the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have not provided specific informative to the Department regarding details of these services and the items in respect of which the insurance service, in question, were used. On this basis a show cause notice dated 30-10-2009 was issued to the appellant seeking recovery of allegedly wrongly taken Cenvat credit amounting to Rs. 24,86,526/- along with interest under Rule 14 of the Cenvat Credit Rules, 2004, readwith Section 11A(1) and 11AB of Central Excise Act, 1944 and imposition of penalty on the appellant under Rule 15 of Cenvat Credit Rules, 2004. 1.2 The above show cause notice was adjudicated by the Additional Commissioner vide order-in-original dated 19-8-2010 by which the above-mentioned Cenvat credit demand was confirmed along wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal judgment in case of Finolex Cables Ltd. v. CCE, Pune-II reported in 2009 (14) S.T.R. 303 and CCE, Raipur v. Beekay Engg. Castings Ltd. reported in 2009 (16) S.T.R. 709 (Tri.- Delhi), that insurance service for cash in transit, and company s vehicles are eligible for Cenvat credit and in this regard he relies upon judgments of the Tribunal in cases of HEG Ltd. v. CCE, Raipur reported in 2010 (17) S.T.R. 178, that insurance of employees against accident and sickness is eligible for Cenvat credit and in this regard he relies upon Tribunal s judgments in cases of CCE, Aurangabad v. Endurance Systems India Pvt. Ltd. reported in 2009 (237) E.L.T. 204 = 2010 (20) S.T.R. 267, Millipore India Ltd. v. CCE, Bangalore-II reported in 2009 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point of dispute is as to whether the service of insurance of plant and machinery, insurance against machinery breakdown, insurance of appellant company s vehicles, finished goods in stock and in transit, cash in transmit and the insurance of employees against accident and sickness is covered by the definition of input service . 6.1 The definition of input service , as given in Rule 2(l) of Cenvat Credit Rules, 2004 has two parts. The main definition part during the period of dispute covered - any service used by a provider of taxable service for providing in output service, or used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Hon ble Bombay High Court in case of CCE, Nagpur v. Manikgarh Cement reported in 2010 (20) S.T.R. 456 (Bom.) will not be covered by the definition of input service . 6.1.2 While the inclusive portion of the definition of input service does not specifically cover insurance of plant, machinery, goods in storage or transit etc., it does cover - activities relating to business, such as accounting, auditing, financing,.... . Because of use of the words such as the scope of activities relating to business is very wide and the list of services covered by this expression mentioned in the definition i.e. accounting, auditing, financing, recruitment,.... is not exhaustive. Hon ble Bombay High Court in case of CCE, Nagpur v. Ultratec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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