Cenvat credit on imported product insurance services accepted where the service has a clear nexus with manufacturing activity.

Product insurance services availed from abroad on reverse charge basis were examined for Cenvat credit eligibility on the basis of their nexus with manufacturing activity. The note records that earlier Tribunal decisions had treated product liability insurance as falling within the definition of input service, supporting credit availability for such services. On that reasoning, Cenvat credit was stated to be admissible and consequential relief followed.

---

---

Issues: Whether Cenvat credit of service tax paid on Product Insurance Services availed from abroad on reverse charge basis was admissible as input services.

Analysis: The dispute turned on whether the insurance service had sufficient connection with the appellant's manufacturing activity. The Tribunal noted that the question had already been decided in earlier Tribunal decisions, which had treated Product Liability Insurance as falling within the definition of input services and therefore eligible for Cenvat credit.

Conclusion: Cenvat credit was held admissible. The impugned order was set aside and both appeals were allowed with consequential relief.

---