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<h1>Manufacturer wins appeal on CENVAT Credit for insurance & director fees</h1> <h3>M/s. Rane Brake Lining Ltd. Versus The Commissioner of G.S.T. & Central Excise, Puducherry Commissionerate</h3> M/s. Rane Brake Lining Ltd. Versus The Commissioner of G.S.T. & Central Excise, Puducherry Commissionerate - TMI Issues:1. Eligibility of CENVAT Credit on service tax paid on Product Liability insurance.2. Eligibility of CENVAT Credit on service tax paid on Director Sitting Fees.Eligibility of CENVAT Credit on service tax paid on Product Liability insurance:The appellants, manufacturers of various automotive products, availed CENVAT Credit of &8377; 37,994/- for service tax paid on Product Liability insurance in July 2016. A Show Cause Notice was issued proposing recovery of the credit, claiming it as ineligible. The Original Authority confirmed the duty demand and imposed a penalty under Rule 15(1) of the CENVAT Credit Rules, 2004. The Commissioner of G.S.T. & Central Excise upheld this decision. The appellant appealed, arguing that a similar issue was decided in their favor in a previous case. The Tribunal in the previous case ruled that the insurance covered financial risks of the manufacturer, making it an eligible credit. Citing this precedent, the current Bench allowed the appeal, granting consequential reliefs.Eligibility of CENVAT Credit on service tax paid on Director Sitting Fees:The second issue pertained to the eligibility of CENVAT Credit on service tax paid on Director Sitting Fees. The Tribunal referred to a previous case where it was decided that such fees were eligible for credit as it was the duty of the director to attend meetings. Following the precedent set in the earlier case, the Bench allowed the appeal, setting aside the disallowance of credit on the impugned services. The order was pronounced in open court, granting the appeal with consequential relief if any.This judgment highlights the importance of legal precedents in determining the eligibility of CENVAT Credit on specific services and fees. The decision emphasizes the need for consistency in interpreting tax laws and credits across similar cases to ensure fairness and adherence to established principles.