TMI Blog2014 (3) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... A HIGH COURT)] wherein ‘Insurance Auxiliary Services’ were held to have a nexus with the business activities of the assessee - stay granted. Cenvat credit in respect of Residential Fire Policy - nexus with business activity - Held that:- Conflicting decisions of the High Court have been cited before me. Judicial discipline demands that the view taken by the jurisdictional High Court be followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENVAT credit taken by the assessee in respect of Employees Health Insurance was allowed by the Commissioner (Appeals) in view of the Hon ble High Court s judgement in the case of Commissioner vs. Micro Labs Ltd. [2011 (24) S.T.R. 272 (Kar.)]. In respect of the same policy, however, CENVAT credit was denied for the period prior to 1.4.2008 on the ground that, for this period, the benefit could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny binding jurisdictional precedent to the contra. 2. As regards a small part of the demand (Rs. 51,784/-) in respect of Residential Fire Policy, CENVAT credit to this extent has been denied to the assessee on the ground that there is no nexus between their business activity and the residential fire policy . In this connection, the learned counsel for the appellant relies on ITC Ltd. vs. Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d between the business of the assessee (manufacture of final products) and security services employed in their residential colony. In both the cases, consequently, CENVAT credit came to be denied on activities/services undertaken/rendered at residential colonies setup away from the factory of the manufacturers. 3. Conflicting decisions of the High Court have been cited before me. Judicial discip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in ITC Ltd. case stands affirmed with the decision of the Hon ble High Court of Andhra Pradesh. The present dispute, undisputedly, comes from the State of Andhra Pradesh and, therefore, the Hon ble High Court s judgment is a fit precedent to be followed. 4. In the result, there will be total waiver of pre-deposit and stay of recovery as prayed for. (Pronounced and dictated in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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