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 and SUN]

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 and SUN]

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

Cenvat credit on marine insurance: credit may be claimable when insurance covers goods until export and is paid by manufacturer.
Whether cenvat credit is available on service tax paid for marine insurance taken by a manufacturer for export depends on whether the insurance premium is an input service attributable to goods cleared for export; when the insurance is procured before delivery to the carrier and covers goods until the port of export, practitioners consider the credit claimable, with a tribunal judgment cited in support. If credit is not available, refund pathways under the export framework may apply to remove tax incidence on exported goods.