Cenvat credit on insurance charges paid during erection and commissioning of transformer at customer site.

[Rajat Chandak]

i am auditing in a manufacturing company of transformers,i am explaining my query below -

company has contract to supply transformers at substation of customer, where an agreement of insurance is undertaken by manufacturing company for transformers sent to site for the period upto erection and commissioning of that transformer.and thus transformer sold and sent to customer site for the same purpose, my question is whether manufacturer of transformer can avail cenvat credit of service tax paid along with insurance premium on insurance of transformer.

AI Summary

Can a Manufacturing Company Claim Cenvat Credit on Insurance Service Tax for Transformer Installation? A manufacturing company queries whether it can claim Cenvat credit on service tax paid for insurance during the erection and commissioning of transformers at customer sites. The discussion involves multiple replies, with one participant affirming the possibility of claiming credit, while another argues against it, citing that the insurance service is received post-sale and beyond the place of removal. References to relevant circulars and case law are provided to clarify the determination of the 'place of removal' and the eligibility for Cenvat credit, emphasizing the importance of where the transfer of goods' ownership occurs.