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2019 (6) TMI 194

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..... ld merit classification as “Input Service”. Unless and until a business is safeguarded against risk and losses it cannot work continuously. The Appellant are eligible to avail credit of service tax paid on Insurance Services as all are related to secure the plant and machinery and thus merit consideration as “Input Services” - appeal allowed - decided in favor of appellant. - Excise Appeal No. 12241 of 2018 - A/10952/2019 - Dated:- 3-6-2019 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) Shri. Vishal Agarwal & Dimple Gohil, Advocate for the Appellant Shri. Sameer Chitkara, Authorized Representative for the Respondent ORDER PER: RAMESH NAIR The present appeal has been filed against impugned O .....

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..... he lack of insurance cover does not have any bearing on the manufacturing process and therefore the services cannot be considered as Input Service as defined in Rule 2 (l) of the CCR, 2004. The demand was confirmed vide impugned order holding that the various insurance coverage preferred by the Appellant are not essential in the day to day working and running of over all operations of the assessee and are not integral to the running of petrochemical complex. Aggrieved, the Appellant has filed present appeal. 2. Shri. Vishal Agarwal Ld. Counsel alongwith Ms. Dimple Gohil, Ld. Advocate, appearing for the Appellant submits that the definition of Input Service covers every service used directly, indirectly in or in relation to manufacture of th .....

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..... orted in 2018 (15) GSTL 366 (TRI) and submits that in the light of above judgments also the credit is available to the Appellant. 3. Shri Sameer Chitkara, Ld. Additional Commissioner (AR) appearing for the revenue supports the findings of the impugned order. 4. Heard both the sides and perused the records. We find that the Appellant has taken the general Insurance policies to safeguard its petroleum Complex. The services of insurance as found from the list are integral to the safety. The value of plant and machinery running into thousands of crores are required to be safeguarded against various risks. Without such insurance services in case of any mis -happening, the enterprise would be at great loss and can never re-start its operations. W .....

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..... plant and machinery, inputs, other goods and factory building and building & residential township. It is also undisputed that the cost of such insurance 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 duty/taxes paid on the various inputs/input services availed by the appellant for undertaking their .....

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..... the final product. It is also recorded by the adjudicating authority that the order of the Tribunal is accepted by Revenue. On this factual matrix, we find that the findings as recorded by the adjudicating authority are in consonance of the law as has been settled by this Bench in the respondent-assessee s similar case. 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 15-10-2015 has relied upon various judgments of the Hon ble High Court of Bombay, and held that when the cost of any service is included to determine the valuation of the final product, Cenvat credi .....

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