https://www.taxtmi.com/caselaws?id=242285 Insurance premium paid by a labour contractor and reimbursed by the manufacturer was treated as an input service under Rule 2(l) of the Cenvat Credit Rules, 2004 because insurance of labourers engaged in the factory was considered essential for the smooth functioning of the manufacturing process. The original adjudicating authority had denied credit on the footing that the manufacturer was not the direct service recipient, but the Commissioner (Appeals) held that the premium formed part of the cost of production and allowed Cenvat credit. On a prima facie view, the Tribunal found that reasoning correct and refused to stay the appellate order, thereby leaving the credit allowance operative. en-us Fri, 30 Sep 2011 00:00:00 +0530 Sat, 11 Jan 2014 05:33:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=242285 Insurance premium paid by a labour contractor and reimbursed by the manufacturer was treated as an input service under Rule 2(l) of the Cenvat Credit Rules, 2004 because insurance of labourers engaged in the factory was considered essential for the smooth functioning of the manufacturing process. The original adjudicating authority had denied credit on the footing that the manufacturer was not the direct service recipient, but the Commissioner (Appeals) held that the premium formed part of the cost of production and allowed Cenvat credit. On a prima facie view, the Tribunal found that reasoning correct and refused to stay the appellate order, thereby leaving the credit allowance operative. Case-Laws Service Tax Fri, 30 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=242285