We have a issue with the Central Excise Department. The matter is as under:
In F-Y 2008-2009 we have paid a sum of rupees towards key man insurance policy of one of the executive director of our company (Company is engaged in manufacturing of Auto Component), in which service tax is also included, and the service tax paid under the said premium, CENVAT CREDIT has been claimed by us under central excise return.
Now, in departmental audit the amount of CENVAT CREDIT claimed by us, has not allowed by the Superintendent of Excise & Customs and he ask for any circular / notification / Case Law in this regard.
Can any body get me any help in this regard?
Manufacturing company's CENVAT credit claim on keyman insurance disallowed; debate on 'input service' definition under Cenvat Credit Rules, 2004. A manufacturing company faced an issue with the Central Excise Department regarding CENVAT credit claimed on service tax paid for a keyman insurance policy for an executive director. The department disallowed the credit, prompting a request for relevant legal support. Responses highlighted that, prior to the 2011 amendment, such insurance was not considered an 'input service' under the Cenvat Credit Rules, 2004, as it was not directly related to business activities. Some argued that keyman insurance should qualify as a business-related activity, while others maintained that personal consumption services are not eligible for credit. (AI Summary)
TaxTMI 
TaxTMI 
