9911796707
TMI Blog2016 (12) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... y Commissioner (AR) for the Respondent. [Order per: Sulekha Beevi, C.S.] The appellant is engaged in the manufacture of cement and clinker and they are availing CENVAT Credit on capital goods, inputs and input services. During the course of audit it was noticed by the department that appellant had irregularly availed credit to the tune of Rs. 1,01,200/- under the category of Insurance & Auxillia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce policy being a Keyman Insurance Policy (KIP) is taken in the name of Sh. Venkata Vishnu Raju Kalidindi, Managing Director of the company. He explained the nature of the KIP and the purpose for which the said policy was availed. He submitted that the Managing Director being a key employee of the organization the said policy is a special plan of insurance to meet the crisis in case the insured p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vail such a policy. He vehemently contended that such service would fall within the exclusion portion of the definition as it is availed for the personal consumption of an employee / Managing Director of the company. That therefore the authorities below have rightly denied credit. 4. I have heard the rival submissions made before me. The definition of input service after 01.04.2011 has introduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y may undergo due to the death/loss of key person. From the very object of keyman insurance it is evident that the service is availed for protecting the loss that may occur to the company in the event of death of the keyman. Needless to say that the Managing Director of the company falls within the category of keyman of the organization. In such circumstances the activity of insurance and auxiliar ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
