Cenvat Credit on Marine Insurance (Import & Export) Policy is available to manufacturer

[Geeta Rani]

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.

AI Summary

Cenvat credit on marine insurance allowed where directly connected to manufacturing activity, contingent on place of removal nexus.
Availability of Cenvat credit on service tax paid for marine insurance hinges on whether the insurance directly nexus to manufacturing and supply activities. Credit is suggested where place of removal is the port rather than the buyer, supporting input credit for insurance related to transport to or from the port. Conversely, a Supreme Court view that the buyer's location is not the place of removal implies that Cenvat on outward freight or outward insurance may not be available; entitlement therefore depends on demonstrating the direct nexus and correct place of removal characterisation.