TMI Blog2023 (7) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... ave not brought on record any grounds based on which they have came to the conclusion that the said credit i.e. premium paid for Marine Insurance was not an admissible credit, either on the grounds of nexus to manufacturers or on the grounds that the clearance being ex-work and not FOR basis etc therefore not admissible. In the absence of any clear cut charge and the grounds given in the show cause notice, the confirmation of demand by taking recourse to various contradictory grounds, which were not even alleged explicitly and explained in the show cause notice, would not be legally tenable. It is now a settled law that the matter cannot be decided by the Original Authority or in appeal by the Appellate Authority on the grounds not cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve for the Respondent ORDER [ ORDER PER : A. K. JYOTISHI ] The appellant were served with a show cause notice by the Department alleging that in terms of definition of input service under Rule 2(l) of the Cenvat Credit Rules 2004, they are not entitled to avail service tax credit on insurance premium paid on marine cargo policy for the year 2016-17. The Department, from the reading of the definition under Rule 2(l) of Cenvat Credit Rules 2004, with effect from 01.04.2011, came to conclusion that the service mentioned in para 2 of the show cause notice received by the tax payer cannot be considered as the input service for them. The show cause notice dated 17.07.2018 was issued placing the reliance on the Marine Cargo P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td., and thereafter found it not applicable to the facts of the case. He came to the conclusion that the price in this case is ex-works and not FOR as claimed by the appellant. He has given reasons as to why either Roofit case or Emco case would not be applicable in the facts of the case. Instead, he has relied upon the case of Ispat Industries Ltd., [2015 (324) ELT 670 (SC)], which is later to the judgment in the Roofit Industries Ltd. He also relied on the judgment in the case of Ultratech Cement Ltd., [2018 (9) GSTL 377 (SC)] and Vasavadatta Cements Ltd., [2018 (11) GSTL 3 (SC)]. 4. On the other hand the appellant has mostly argued that in view of P.O., the sale is on FOR destination basis. They also relied on Board s Circular No. 106 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not admissible in the facts of the case. The show cause notice has only quoted the legal provisions, but have not brought on record any grounds based on which they have came to the conclusion that the said credit i.e. premium paid for Marine Insurance was not an admissible credit, either on the grounds of nexus to manufacturers or on the grounds that the clearance being ex-work and not FOR basis etc therefore not admissible. In the absence of any clear cut charge and the grounds given in the show cause notice, the confirmation of demand by taking recourse to various contradictory grounds, which were not even alleged explicitly and explained in the show cause notice, would not be legally tenable. 7. It is now a settled law that the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that clearance is on FOR basis and therefore even if it is not covered under main definition, it is still an admissible credit. All the arguments and counter arguments could have been avoided had the Revenue given exact detailed grounds in show cause notice as to why the credit of insurance premium paid for Marine Insurance service was not an admissible credit in a given set of facts. Revenue has clearly failed on this count. 9. Thus, on the ground itself that both Order-in-Original and Order-in- Appeal have travelled beyond allegations in show cause notice, the order of the Commissioner (Appeals) is liable to be set aside without going into the merits of the case advanced by both the sides. Therefore, the order of the Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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