We are a manufacturing Company and we have taken marine insurance policy for our import and export. Are we eligible to avail service tax paid on marine insurance policy?
If yes, then kindly quote some relevant case law.
Since Supreme Court in its one of the case made it clear that place of buyer cannot be 'place of removal' of goods. Accordingly as per Supreme Court judgement, Cenvat credit of service tax paid on outward freight or outward insurance will not be available.
Eligibility of Cenvat Credit on Service Tax for Marine Insurance Depends on 'Place of Removal' as Per SC Ruling A manufacturing company inquired about the eligibility to claim Cenvat credit on service tax paid for marine insurance policies related to imports and exports. The discussion highlighted a Supreme Court ruling stating that the buyer's location cannot be considered the 'place of removal' for goods, impacting the availability of Cenvat credit on outward freight or insurance. A respondent clarified that the place of removal is the port, not the customer's location, suggesting a direct nexus with manufacturing and supply activities, which may allow the company to claim input credit on the service tax paid for such insurance. (AI Summary)
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