2018 (10) TMI 563

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..... urance services for an amount of Rs. 7,73,832/- for the period from April 2014 to March 2015. It appeared to the department that general insurance / insurance auxiliary services are not covered within the definition of input service and therefore the appellants are not eligible for the credit. Show cause notice dated 19.4.2016 was issued proposing to disallow the credit and recover the same along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand of Rs. 7,73,832/- by disallowing the credit and ordered for recovery of the same along with interest and imposed penalties. In appeal, Commissioner (Appeals) allowed part of the credit to the tune of Rs. 3,05,687/- and disallowed the rem .....

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..... r premises and the insurance policy was availed for transit of such goods. The department has denied the services alleging that the appellant has not proved the nexus for providing the output service as well as for the reason that insurance service are excluded from the definition of input service. She argued that only those insurance services such as life insurance, health insurance which are for personal consumption of the employee are excluded from the definition of input service. Since these transit insurance policies are necessary for the appellant to move the goods for providing the output service, the same are eligible for credit. 3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He submitted that both t .....

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..... ioned therein except storage and outward transportation with the words "upto the place of removal". Needless to say accounting, auditing etc. are related to post-manufacturing activity also. For these reasons and find from the discussions above, I hold that the errors and omission policy availed by the appellant is eligible for credit. For the very same discussions made above, the transit insurance policy which is availed by the appellant for moving the goods to the site where the output services are to be provided are also eligible for credit. The impugned order is set aside to the extent of disallowing credit to the appellant. The appeal is allowed with consequential relief if any. (Dictated and pronounced in open court)
Case laws, D .....

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