Appellant wins appeal on Cenvat Credit for insurance services related to goods delivery

The Tribunal allowed the appellant's appeal, emphasizing the admissibility of Cenvat Credit for insurance services related to the delivery of goods to customer premises.

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Issues:
Admissibility of input service credit for insurance services from factory premises to customer doorsteps.

Analysis:
The appellant filed an appeal against the rejection of admissibility of input service credit for insurance services from factory premises to customer doorsteps. The appellant argued that ownership of goods remains with them, and no separate freight is charged to customers. They relied on CBEC Circular No. 97/8/27-ST and case laws to support their claim. The advocate highlighted that details of services were disclosed in ER-I returns, making the extended period inapplicable.

The Revenue contended that insurance charges incurred after the factory gate are not admissible for credit. The Revenue strongly defended the lower authorities' decision to reject the credit.

The Tribunal deliberated on whether Cenvat Credit for insurance services from factory gate to customer premises is admissible. It was noted that the appellant availed insurance services for transportation of goods they owned, with no separate transportation charges to customers. The Tribunal found that ownership of goods remained with the appellant until delivery to customer premises, making the place of removal shift to the customer premises. Cenvat Credit for insurance services in such cases was deemed admissible based on the CBEC Circular and precedent cases. The appeal was allowed on merits without discussing the limitation aspects of the demand.

In conclusion, the Tribunal allowed the appeal filed by the appellant on merits, emphasizing the admissibility of Cenvat Credit for insurance services related to the delivery of goods to customer premises.

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