TMI Blog2019 (7) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... products cleared by them. When the defects are found and put forward only after use of the vehicle by the purchaser of the vehicle, in such cases, the automobile manufacturer has to compensate / satisfy the claim of the customer which is thereafter reimbursed by the appellant. In such cases to cover the risk of such payment, appellant has to avail product liability insurance. Indeed, this insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the appellant had availed credit of service tax paid on premium for product liability insurance for the period 2012-13 to 2015-16. Department was of the view that the said credit is not eligible as the same is post-sales/post-manufacturing service. Show cause notice was issued proposing to recover the wrongly availed credit along with interest and for imposing penalties. After due process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, appellant has availed the product liability insurance. It is indeed in relation to the manufacture of finished products of the appellants. He relied upon the following decisions of the Tribunal : (i) Rane Brake Lining Ltd. Vs CGST Central Excise 2018 (7) TMI 611 CESTAT CHENNAI. (ii) Sundaram Dynacast Pvt. Ltd. Vs CCE Chennai-II 2018 (2) TMI 2 CESTAT CHE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon para-5 of the SCN to argue that it is only in the nature of a compensation that is paid when the warranty is claimed for manufacturing defect of the goods or for personal injury or property damage to anyone that is caused by the defect in the goods. 4. Heard both sides. 5. The issue is whether the appellant is eligible for cenvat credit of service tax paid on product liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant and is also an input service used in relation to the manufacture of the finished products. The decisions relied by the appellant have also discussed in detail as to how the said services will qualify as an input service . After appreciating the facts, evidence as well as following the decisions in Rane Brake Lining Ltd. (supra) and Sundaram Dynacast Pvt. Ltd. (supra), I am of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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