TMI Blog2018 (7) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant / manufacturer will have to recall the product and thereby incur huge financial loss. The insurance is for covering the financial loss of the appellant / manufacturer and it cannot be considered as a post-manufacturing activity - This cannot be said to be a post-manufacturing activity for the reason that such insurance policies addresses the financial risks of the manufacturer - denial of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and after due process of law, the original authority allowed the credit on various services. The credit in respect of service tax paid on Director Sitting Fees as well as on premium for product liability insurance was disallowed. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Ms. S. Yogalakshmi submitted that the operative claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 2017 (5) TMI 1079 CESTAT Hyderabad. With regard to the disallowance of credit on fees paid for director sitting, she submitted that they have discharged the liability under reverse charge mechanism and it is incumbent upon the Director to attend the meetings and therefore the same is directly connected to the manufacturing activity of the appellant. To support her argument, she relied upon t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid on product liability insurance. The department has denied the same on the ground that it is post-manufacturing activity and the liability arose only when the goods are handed over to the buyers. In fact, as per the explanation given by the appellant, it can be seen that the risk covers the defects with the product. In such cases, when there are defects to the product, the appellant / manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue for consideration is regarding the eligibility of credit on service tax paid on Director Sitting Fees. The said issue is covered by the decision in the case of SKN Organics P. Ltd. (supra). Further, it is also to be stated that it is the duty of the director to attend the meetings and therefore the service tax paid on such fees is eligible for credit. 7. From the discussions made above, I a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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