2011 (6) TMI 238

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....acture of Electrical goods and is a 100% EOU. During the course of their business of their manufacturing, they availed several services and availed service tax paid thereon as input service credit. The input service credit on the following services availed by them was denied to them by the lower authorities. Sr. No. Category of Service Amount of Credit (in Rs.) Reasons for denial 5 Banking and other Financial Services 29223 Collection of Export Bills; post manufacturing/export activity 1 Catering Services 29751 Recovered from the employees not borne by the appellants 2 Courier services 24699 Not used for manufacture and clearance of goods up to place of removal; failed to demonstrate that the ....

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....n 2010(20)STR 577(Bom.) wherein the Hon'ble High Court has held that the assessees entitled to avail input service credit on the services availed by them in their business of manufacturing of final product. 4. In the light of the said decision, I have to examine each service separately as follows:     (1) Banking & Other financial services:-     The credit has been denied on the ground that these services had been availed for collection of export bills, which is a post manufacturing/export activity related to export of goods, therefore credit was denied. I find that these services have been availed by the appellants in their business of manufacturing of export of the goods. Therefore they are entitled ....

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....manufacturing of the appellant. The appellants relied on the decision of Millipore India Ltd. vs. Commissioner of Central Excise, Bangalore-II reported in 2009(13)STR 616(Tri-Bang) and submitted that credit on insurance was allowed in that case, therefore the input service credit on insurance service be allowed. I have gone through the facts of the case in Millipore India Ltd. (supra), in that case insurance was taken for group insurance of the employees or personal accident of the employees and not of the family members of employees. Therefore, the said decision is not relevant to the facts of this case. Therefore the credit is denied.     (5) Maintenance and Repair of Garden     The credit is denied on ....