CENVAT CREDIT ON MARINE INSURANCE POLICY TAKEN FOR EXPORT OF GOODS

[SHIVANSH KHANDELWAL]

Dear All,

Whether CENVAT CREDIT on premium paid on MARINE INSURANCE POLICY taken for the purpose of export of goods can be availed?

If can't be availed coz of CCR UpTo place if removal clause....then what will be the place of removal in this case.... As insurance cost is borne by the manufacturer....

Kindly reply with any relevant case law.

Thank you all

[PAWAN KUMAR]

Dear Sir,

As per my view, you may claim cenvat credit of service tax paid on insurance premium of Marine Policy.

[SHIVANSH KHANDELWAL]

Dear Mr. Pawan Kumar...can u refer me any relevant case law...

Or any legal support

Thanks

[Rajagopalan Ranganathan]

Sir,

In your case the place of removal is the port of export. You have taken the insurance before handing over the export goods to the Shipping Line. Therefore you are eligible to avail credit of service tax paid on marine insurance paid by you.

[Rajagopalan Ranganathan]

Sir,

I am appending hereunder a relevant case law:-

2016 (5) TMI 843 - CESTAT CHENNAI- Alstom T & D Ltd. Versus Commissioner, LTU, Chennai

[SHIVANSH KHANDELWAL]

Thank you....but would like know...that even if Insurance is for marine cargo....will it be after the consensus of place of removal...

[Ganeshan Kalyani]

Sir, the case law cited by Sri Rajagopalan Sir, states that Servicetaxpaidoninsurance of the goods cleared from the factory gate till that reaches abroad. Your query is catered. Thanks.

[YAGAY andSUN]

Even if on the worst case scenario, for the sake of argument, if CENVAT credit is not available, even then, refund would be available since as per the FTP Goods and Services should be exported out of India but not the taxes to make Indian Goods and Services .

[Ganeshan Kalyani]

Yes Sir, I agree with you. You have enriched my knowledge. Thanks.

[YAGAY andSUN]

Rajagopalan Ranganathan Sir,

We have gone through the judgment which was shared by you. First of all thanks for enriching our knowledge and the second one is that "Do Keep Writing & replying with a smile"

Regards,

YAGAY AND SUN

(Management, Business and Indirect Tax Consultants)

[Rajagopalan Ranganathan]

Sir,

No. I am not replying with a smile.

AI Summary

Eligibility to Claim CENVAT Credit on Marine Insurance for Export Goods: Key Points and Case Law Insights A forum participant inquired about the eligibility to claim CENVAT credit on the premium paid for a marine insurance policy taken for exporting goods. The discussion involved multiple replies, with one participant suggesting that CENVAT credit can be claimed if the insurance is taken before handing over goods to the shipping line, indicating the port of export as the place of removal. A relevant case law from CESTAT Chennai was cited to support this view. Another participant mentioned that even if credit is not available, a refund might be possible according to the Foreign Trade Policy.