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CCE Mumbai Versus Reliance Inds. Ltd. And Vice-Versa

2016 (1) TMI 202 - CESTAT MUMBAI

Cenvat Credit - input services - service tax paid on the services of insurance for their plant and machinery, inputs, finished goods, equipments, vehicles, insurance of residential building of factory/township etc. - Nexus with manufacturing activity - Held that:- The factual findings of the adjudicating authority that the cost of the insurance as indicated in the valuation of the final products remain undisputed. We find that this Bench in the respondent-assessee’s own case by order dated 15.10 .....

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78/15, E/86178/15 - Dated:- 1-12-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) For the Petitioner : Shri V.K. Agarwal, Addl. Commr (AR) For the Respondent : Shri J.C. Patel, Advocate, Shri Vipin Jain, Advocate And Ms. Shilpa Balani, Advocate ORDER Per: M.V. Ravindran When this appeal was called out, it was pointed out that Revenue has filed an application for adducing additional grounds in this appeal. The same is taken up for disposal. On perusal of the mi .....

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d the appeal are not listed today, and perused the same. On perusal we do find that the issue involved is same and in respect of the very same respondent-assessee. Accordingly, after allowing the application for out-of-turn hearing of the appeal No. E/86178/15, we take up both the appeals for disposal. 3. These two appeals filed by Revenue are against orders-in-original No. 214-222/COMMR. (WLH)/LTU-M/CX/2014 dated 14.10.2014 and No. 264/Commr. (WLH)/ LTU-M/CX/2014 dated 19.02.2015 passed by CCE .....

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ssee, they are not eligible to avail CENVAT credit of the service tax paid by the service providers. Various show-cause notices were issued for recovery of the CENVAT credit wrongly availed by the assessee. The adjudicating authority after following due process of law, confirmed the demands raised in the show-cause notices. Aggrieved by such an order, the assessee preferred an appeal before the Tribunal in Appeal No. E/85336/14 which was disposed of by this Bench on stay stage itself vide order .....

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insurance which has been taken by the asseessee-respondent were in respect of various machineries, materials and site manufacturing items as also in respect of the factory building and township. It is his submission that the said insurance does not play any active role and has no direct nexus to the manufacturing process of the final goods of the respondent-assessee hence it does not satisfy the definition of input service as provided in Rule 2(l) of Cenvat Credit Rules, 2004. He would submit t .....

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vice tax paid on the insurance has been is included in the cost of the final products manufactured and cleared by them, is the finding, which has not been disputed and confirmed as part of the cost is also not disputed. He submits that in their own case vide order dated 15.10.2015 as reported at 2015-TIOL-2343-CESTAT-MUM, this Bench has held that when the cost of the services are included in the final cost of the products, CENVAT credit should not be denied on the service tax paid on the service .....

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urance is included in the valuation of the final product manufactured by them. We find that in the 1st round of litigation when the matter came before this Bench and this Bench while remanding the matter back to the adjudicating authority in paragraph No.5.1 has recorded as under:- 5.1 Prima facie, we find that the costs of various services availed forms part of the assessable value of the goods manufactured and sold by the appellant. Therefore, there is no reason to deny Cenvat Credit of the du .....

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d, collusion or any willful mis-statement or suppression of facts. The department has not invoked these powers available to it. In these circumstances, we are of the view that the matter has to go back to the adjudicating authority either to consider the Cost Accountant s Certificates furnished by the appellant or to undertake special audit in terms of the powers of Section 14AA of the Central Excise Act and satisfy himself as to the eligibility of the credit taken by the appellant on these vari .....

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