TMI Blog2014 (7) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. CCE, Indore reported in [2012 (11) TMI 70 - CESTAT, NEW DELHI]. decided in favour of assessee. As regards the eligibility of Cenvat credit of the insurance services used for insurance of the plant and machinery against damage due to accident etc., we are of prima facie view that this service is an integral part of the business of manufacturing of final product, as no prudent manufacturer would start manufacturing operations without ensuring his plant and machinery and other costly assets and hence the ratio of the judgment of Hon'ble Bombay High Court in the case of Commissioner vs. Ultratech Cement Ltd. (2010 (10) TMI 13 - BOMBAY HIGH COURT ) would apply. The Commissioner's reasoning that amendment made to Rule 2 (l) w.e.f. 01/4/11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case is in respect of Cenvat credit of ₹ 81,90,178/- taken by them in respect of courier service used for sending documents, landline telephone/mobile phone service and insurance of plant and machinery. The department was of the view that these services are not eligible for Cenvat credit and accordingly a show cause notice dated 03/12/08 was issued for recovery of the above-mentioned Cenvat credit of ₹ 81,90,178/- from the appellant alongwith interest and also for imposition of penalty on them. Subsequently, another show cause notice dated 24/04/09 was issued for recovery of Cenvat credit amounting to ₹ 9,65,007/- in respect of the same services for the period from April 2008 to September 2008. 1.2 Both the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or in relation to manufacture of final product, whether directly or indirectly i.e. the services covered by the main definition clause, but also the services which are used in relation to business of manufacturing, that courier services used for despatch of documents and services for insurance of plant and machinery are very much part of the business of manufacturing, as no prudent manufacturer would carry out manufacturing operations without insuring his plant and machinery and other costly assets, that the Commissioner's finding that amendment to Rule 2 (l) w.e.f. 01/4/11 by which expression activities relating to business was detected, is a retrospective amendment, is totally incorrect, as any amendment which adversely affects on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing of the appeals and recovery thereof may be stayed till the disposal of the appeals. 4. Shri Yashpal Sharma, the learned DR, opposed the stay applications by reiterating the findings of the Commissioner and pleaded that the services of courier for despatching documents to customers, dealers etc., the services of telephone used by the employees for company's work and services of insurance of plant and machinery have no nexus, whatsoever, with the manufacture of final product and accordingly these services are not eligible for Cenvat credit. He, therefore, pleaded that this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input services and thereby restricting the availability of Cenvat credit to an assessee cannot be given retrospective amendment when there is no such intention expressed in the amending provision. We find that the Tribunal in the case of Federal Mogul Goetze (India) Ltd. vs. CCE, Chandigarh - II (supra) had also expressed the view that insurance of plant and machinery against risks and hazards is eligible for Cenvat credit and is covered by the definition of input service. 9. In view of the above discussion, we hold that the appellant have strong prima facie case in their favour. The requirement of pre-deposit of Cenvat credit demand, interest thereon and penalty is, therefore, waived for hearing of their appeals and recovery thereof is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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