TMI Blog2017 (3) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ansit, goods in transit, vehicles & computers, etc. against any loss due to accident, natural calamities, etc - appeal allowed - decided in favor of appellant-assessee. - E/3783 to 3787 of 2012 - Final Order No. 50332-50336/2017 - Dated:- 12-1-2017 - Dr. Satish Chandra, President and Mr. V. Padmanabhan, Member (Technical) Rep by Sh. Hemant Bajaj, Adv. Rep by Sh. H.C. Saini, DR ORDER The present appeals are filed by the assessee-Appellants against the Order-in-Original No 54-58/2012 C.EX/JPR-II/COMMISSIONER dated 31.08.2012 passed by the Commissioner of Central Excise, Jaipur-II. 2. The brief facts of the case are that the assessee-Appellants at their smelting unit are engaged in the manufacture of Lead and Zinc fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of show cause notices to the assessee-Appellants on the ground that they have availed wrongful credit since the impugned services have not been used by the assessee-AppelIants directly or indirectly, in or in relation to manufacture of their final product. The learned Commissioner has confirmed the demand against the assessee-Appellants. 3. Being aggrieved, the assessee-AppeIlants have filed the present appeals. 4. With this background, we have heard Shri Hemant Bajaj, learned counsel for the assessee-Appellants and Shri H.C. Saini, learned DR for the Respondents. 5. After hearing both sides and on perusal of the record, it appears that the issue is squarely covered by the ratio of judgment in assessee-Appellants' own cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity is not integrally connected with the business of the manufacture of final product, that service would not qualify to be an input service under Rule 2(l) of the Cenvat Credit Rules; and (c) the expression activities relating to business in the inclusive portion of the input service widens the scope of input service so as to cover all services used in the business of manufacturing of final product and that the said definition is not restricted to the services enumerated in the main definition part of the input service and the Revenue s contention that a service to qualify as input service must be used in or relation to the manufacture of final product is not correct, as any service used in or in relation to the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transit, vehicles computers, etc. against any loss due to accident, natural calamities, etc. In view of this, the services of plant and machinery, transit insurance of goods, insurance of cash in transit, laptop, etc. have to be treated as an activity related to the business and would be eligible for Cenvat credit. 9. As regards, the Group Insurance of all Employees against sickness or accident, the same has been held as Cenvatable by the judgments of Hon ble Karnataka High Court in the cases of Stanzen Toyotetsu India (P) Ltd. (supra), Micro Labs Ltd. and M/s. Millipore India Ltd. (supra). Moreover, Group insurance of the employees against accident or sickness is the requirement of Section 38 of the Employees State Insurance Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w.e.f. 1-4-2011 has to be treated as of clarificatory nature and hence, having retrospective validity. 11. In view of the above discussion, we hold that the impugned order is not only sustainable but is an absurd order passed without any application of mind. What we find more disturbing is that though the judgments of Tribunal and High Court with regard to eligibility of various insurance services for Cenvat credit :- (a) Judgment of Larger Bench of Tribunal in case of CCE, Mumbai-IV v. GTC Industries Ltd. reported in 2008 (12) S.T.R. 468 (Tri.-LB) and Tribunal s judgments in cases of Finolex Cable Ltd. v. CCE reported in 2009 (14) S.T.R. 303 (Tri. - Mum.) and Millipore India Ltd. reported in 2009 (13) S.T.R. 616 (Tri. - Bang.) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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