CESTAT disallows Cenvat credit for insurance services in manufacturing citing case law

The Appellate Tribunal CESTAT, New Delhi disallowed Cenvat credit for insurance services received by the appellant for insuring its employees' health, citing Ellora Times Ltd. v. CCE. The Adjudicating authority found no connection to manufacturing activity. A waiver of pre-deposit and stay of demand realization was granted during the appeal.

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The Appellate Tribunal CESTAT, New Delhi disallowed Cenvat credit of Rs. 3,56,790/- for insurance services received by the appellant for insuring its employees and their health. The decision was based on the case of Ellora Times Ltd. v. CCE. The Adjudicating authority reasoned that the insurance service had no connection with the manufacturing activity. A waiver of pre-deposit and stay of realization of the demand was granted during the appeal.

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