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JSW Salav (Steel) Ltd Versus Commissioner of Central Excise, Raigad

2015 (4) TMI 615 - CESTAT MUMBAI

Denial of CENVAT Credit - various insurance policies in respect of capital assets - Held that:- various insurance policies taken by the appellant falls into the category of Marine Hull Policy, Public Liability Insurance Policy, Standard Fire and Special Perils Policy, Burglary Standard Insurance Policy, Marine Cargo Open Policy, Industrial all Risks Insurance Policy, Marine War Insurance Policy, Money Insurance Policy and Contractors Plant and Machinery Insurance Policy. While Marine Hull Policy .....

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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 eligibility to Cenvat credit on marine insurance policies taken in respect of tugs and barges is clearly not .....

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ant would be eligible for the credit of service tax paid on various insurance policies in respect of such assets. Therefore, the matter is remanded back to the adjudicating authority for ascertaining the entitlement of service tax paid in respect of items as discussed above and allow the same to the appellant - Decided against assessee. - Application No.ST/Extn. /92519/15, Appeal No.ST/89115/13 - Dated:- 20-3-2015 - P. R. Chandrasekharan, Member (T),J. For the Appellant : Ms Aparna Hirandagi, Ad .....

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ons 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 requ .....

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tled for the credit. The learned Counsel also submits that in a case where interpretation of statute is involved, the question of imposition of any penalty would not arise at all. Reliance is also sought to be placed on the decision of the Hon'ble Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement - 2010 (20) STR 589 (Bom), Federal Mogul Goetze (India) Ltd., Vs. CCE, Chandigarh-II - 2013 (31) STR 628 (T), Finolex Cables Ltd., Vs. CCE, Pune-I - 2009 (14) STR 303 (Tri-Mum) , CCE .....

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the decision of this Tribunal, in appellant's own case in the case of Vikram Ispat Vs. CCE, Raigad - 2012 (277) ELT 197 (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'bl .....

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ions made by both the sides. 6.1 From a perusal of the record, it is seen that various insurance policies taken by the appellant falls into the category of Marine Hull Policy, Public Liability Insurance Policy, Standard Fire and Special Perils Policy, Burglary Standard Insurance Policy, Marine Cargo Open Policy, Industrial all Risks Insurance Policy, Marine War Insurance Policy, Money Insurance Policy and Contractors Plant and Machinery Insurance Policy. While Marine Hull Policy, Marine Cargo Op .....

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e 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. Though this judgment has been challenged and admitted by the Hon'ble High Court, there is no stay obtained against this decision and unless it is .....

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ring these goods should be available as credit under CCR 2004. Therefore, Cenvat credit of the service tax paid on assets of the appellant used outside the factory premises is not clearly admissible as they are neither inputs nor capital goods. Similarly, in respect of service tax paid on life insurance and medi-claim insurance for the employees/families the same is specifically excluded in terms of clause (C) of Rule 2 (l) of CCR, 2004 and therefore, the appellant would not be entitled for cred .....

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