TaxTMI 
TaxTMI 
2012 (12) TMI 265
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....aid on inputs and capital goods and of service tax paid on input service used in or in relation to the manufacture of their final products. In this case, the dispute is eligibility for Cenvat credit in respect of the services of the insurance of - (a) plant and machinery including breakdown of machinery; (b) company's vehicles; (c) employees in respect of medical claim (Medi-claim) (d) stock of finished goods (sugar) and molasses (by product) kept in the factory; (e) cash in safe and transit; and (f) finished goods (sugar) in transit. According to Department, the appellant are n....
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..../2011-EX has been filed for admission as additional evidence of the list of documents along with a chart showing the details of credit taken by the appellant on various insurance premium paid in connection with the business of the appellant along with some copies of the bills/vouchers issued by the service providers. 2. Heard both the sides. Though this matter was today listed for hearing of stay application and miscellaneous application, after hearing the same for sometime, we were of the view that the appeal itself can be taken up for final disposal and accordingly, with the consent of both the sides, the matter was heard for final disposal after waiving the requirement of pre- deposit. 3. Shri Rajesh Chhibber, Advocate, t....
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....ng them an opportunity to produce these documents that the appellant may be allowed to place on record this additional evidence and, that from these documents it will clear that the Cenvat credit, in question, has been correctly taken by the appellant and the impugned order is therefore not correct. 4. Shri Nagesh Pathak, the learned Senior Departmental Representative, defending the impugned order by reiterating the findings of the Commissioner (Appeals) in the impugned order emphasised that the insurance service for insurance of plant and machinery, machinery breakdown, finished goods in storage and transit, cash in transit, company's vehicles and employee's insurance against accident and mediclaim have no nexus with the manufactur....
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....hether directly or indirectly, in or in relation to the manufacture of final product" would cover all the services, which have nexus with manufacture whether directly or indirectly and accordingly in addition to services directly required for manufacture such as erection. installation and commissioning of plant, research and development, technical testing, technical consultancy, repair and maintenance of plant and machinery, services for optimising the productivity etc., the services required to be availed for compliance with statutory provision by a manufacturer like Factories Act, labour laws, environmental laws etc. without which manufacturing operations will not be allowed will also be covered. If providing mediclaim insurance policy an....
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....and machinery, goods in storage, cash in transit and goods in transit if his sales are on FOR destination basis. In our view, therefore these services are integrally connected with the manufacturing business of an assessee and the same have to be treated as "activities relating to business" and hence covered by the definition of input service. Same view has been taken by the Tribunal in case of Finolex Cables Ltd. v. CCE, Pune-II (supra). 7. Another objection of the Department to permitting the Cenvat credit, in question, is that the appellant have not provided the details of the item of machines etc. ensured and the details of the invoices of insurance companies on the basis of which the Cenvat credit has been taken. The appellant ....