Input service credit for insurance service upheld despite use outside factory premises under CENVAT rules.

Input service credit on insurance service was held admissible even though the service was not availed within the factory premises. The Tribunal applied the CENVAT Credit Rules and held that they do not require an input service to be received only inside the factory for credit eligibility. Relying on precedent treating insurance-related services as input service, it found the credit denial unsustainable and allowed the assessee's claim.

---

---

Issues: Whether input service credit on insurance service was admissible when the service was not availed in the factory premises.

Analysis: The Tribunal held that the CENVAT Credit Rules do not require an input service to be availed only within the factory premises. Relying on the precedent concerning insurance-related services treated as input service, the Tribunal concluded that the denial of credit on this ground was unsustainable.

Conclusion: The appellant was entitled to input service credit on the insurance service, and the denial was set aside in favour of the assessee.

---