Tribunal grants credits for shipping, insurance, and maintenance costs in manufacturing activities.

The Tribunal allowed credit for shipping fees and services for vessels and barges, citing previous orders. Credit for insurance services was permitted following a High Court decision. Additionally, credit for repair and maintenance of the guest house was allowed as it was considered related to manufacturing activity. The appeals were granted based on arguments and legal precedents, with the decision issued on 05.08.2016 by the Tribunal.

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Issues: Credit availed on input services - shipping fees, insurance, technical testing and certification, cleaning services for Vessels and Barges, repair and maintenance of guest house.

Analysis:

1. Insurance Services:
- Counsel argued that various insurance policies were essential activities and thus, the Service Tax paid on them should be admissible.
- Cited a decision allowing Service Tax on insurance of transit of finished goods and vehicle insurance.
- Highlighted insurance for safety of raw material and finished goods as ordinary business activity.

2. Repair and Maintenance of Guest House:
- Counsel argued for credit based on a Tribunal decision allowing similar services for residential townships.
- AR contended that guest house services lacked nexus with manufacturing activities, citing a Tribunal decision.
- AR relied on another case where services for staff quarters outside factory premises were not allowed.

3. Legal Precedents:
- Counsel referenced cases where credit for maintenance of Barges and Tugs, port services, and shipping fees was allowed.
- AR cited cases where credit for repair and painting of staff quarters outside factory premises was denied.
- AR also referred to a case where services for a guest house were not considered eligible input services.

4. Judgment:
- Tribunal allowed credit for shipping fees and services for vessels and barges based on previous orders.
- Credit for insurance services was allowed following a High Court decision.
- Credit for repair and maintenance of the guest house was allowed as it was deemed related to manufacturing activity.

5. Conclusion:
- The appeals were allowed based on the arguments presented and the legal precedents cited.
- The decision was pronounced on 05.08.2016 by the Tribunal.

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