TMI Blog2015 (4) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... from the mother vessels to the jetty, the other insurance policies pertain to the insurance of the capital assets used within the factory except in the case of Contractors Plant and Machinery Insurance Policy. The nexus between the assets utilised within the factory is clearly discernible, the same cannot be said in respect of goods used outside the factory. As regards the tugs and barges in respect of which marine policies have been taken, this issue has been considered in the Vikram Ispat (cited supra) wherein it was held that there was no nexus between the impugned services with manufacture/clearance of goods; therefore, they are not input service on which the assessee could get benefit of credit of service tax. - Therefore, the elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, M/s. Welspun Maxsteel Ltd., to the extent of ₹ 25,49,607/- and sought to recover the same under the provisions of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 along with interest thereon and by imposing equivalent amount of penalty. Aggrieved of the same, the appellant is before me. 3. The learned Counsel for the appellant submits that the credit has been taken on service tax paid on various insurance policies in respect of capital assets of the appellant company and the period of credit is from April 2011 to August 2012. These capital assets are required for the running of the factory and therefore, the services availed fall within the definition of input service as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Tri-Mumbai), the appellant would not be eligible for the benefit of service tax paid on services in relation to the tugs and barges and therefore, the appellant is not entitled for the entire amount of Cenvat credit. 5. In her rejoinder, the learned Counsel submits that the said decision of the Tribunal in the case of Vikram Ispat, has been challenged before the Hon'ble Bombay High Court and the appeal has been admitted vide Central Excise Appeal No. 102 of 2010 and therefore, the said decision is in jeopardy. It is her submission that the Ultratech Cement decision of the Bombay High Court has held that input service has to be understood in a broad context and any service which is required in relation to the business of manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment has been challenged and admitted by the Hon'ble High Court, there is no stay obtained against this decision and unless it is set aside, the said decision would prevail. Therefore, the eligibility to Cenvat credit on marine insurance policies taken in respect of tugs and barges is clearly not admissible. There is one more reason for coming to this conclusion. The CCR 2004 does not provide for Cenvat Credit of excise/ CVD credit in respect of tugs and barges under the category of capital goods. If excise duty paid on these goods they are not available as credit, it does not stand to reason that service tax paid on insuring these goods should be available as credit under CCR 2004. Therefore, Cenvat credit of the service tax paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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