2015 (11) TMI 969

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....ants for extension of stay are also disposed of as the appeals are taken up for disposal. 2. Heard both sides and perused the records. 3. The issue involved in these cases is whether the appellant is eligible to avail CENVAT credit of the service tax paid on insurance premium to the Insurance Company for Group Insurance and medi-claim policies taken for existing employees as well as for the retired employees; also on the service tax paid on the insurance premium for the policy taken for stocks lying in the foreign warehouses.  Adjudicating authority as well as the first appellate authority have come to a conclusion that the service tax paid on the life insurance/medi-claim policy for the existing employees is eligible for CENVAT ....

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....As regards the service tax credit availed on the amount of insurance premium paid on the stocks which were lying in warehouses in foreign countries, we find that the lower authorities have mis-directed their findings,  without considering the fact that the said services would get cover under the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 (herein-after referred to as Taxation of Services Rules).  We find that there is no dispute as to the fact that the insurance cover was taken for the stocks which were lying in warehouses in a foreign country and the service tax  liability is fastened upon the appellant under the provisions of Section 66A of the Finance Act, 1994.  We find that a....

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.... in the relevant provision of the Cenvat Credit Rules, 2004 and that credit of tax paid on imported services should be allowed, if they are in the nature of input services." 5.3 We further find that this Tribunal in the case of CCE v. 2009 (14) STR 305 (Tri. Ahmd.) had a occasion to consider the place of rendering of services and has held as under:- "4.2 Another point that has been relied upon by the revenue is that service tax credit is not admissible since the erection and commissioning activity is a post removal/post manufacturing activity. I have already mentioned earlier that in the case of service tax what is required to be examined is whether the service has been used in or in relation to manufacture directly or indirectly. Whi....