2016 (9) TMI 325

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... due to fire, burglary etc. involving an amount of Rs. 1,35,044/- and on (b) employee insurance services involving an amount of Rs. 10,442/- . The period of dispute involved in this appeal is from April 2008 to January 2012. 2. Ld. Counsel submits that they are not contesting the second issue i.e. credit availed on employee insurance services which they have already reversed. However, he submits that interest is not leviable and no penalty is payable for the inadvertent availment of credit of Rs. 10,442/- on employee insurance service. He submits that interest is not payable inasmuch as such credit which was inadvertently availed has not been utilized as the month-on-month credit balance has always been more than such credit. Since there....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ary stand in a subsequent proceeding on similar set of facts when the issue stands settled for the previous period. He also filed copies of the insurance documents which shows the Risk Covered and Add on Covers. 2.2 He submits that the lower adjudicating authority and the appellate authority denied the cenvat credit on the ground that the insurance service cannot be said to be used either directly or indirectly in the business of the appellant and is also not mentioned in the inclusive clause of the definition. Further he relied the following case laws in respect of the eligibility of services passed by the Chennai Bench :- (i) Sundaram Clayton Ltd. Vs CCE 2016 (42) STR 741 Tri.-Chennai (ii) DCW Ltd. Vs CCE 2015 (40) ST....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er :- "6.3 A close reading of the above definition clearly indicate that the term input services clearly include services relating to setting up, modernization, renovation or repairs of a factory. It inter alia includes services received in connection with security. Insuring plant and machinery to safeguard against interruption/destruction/break-down and to cover loss of profit due to stoppage of work due to perils like fire, riot, terrorist attack damages etc. is necessarily a precautionary measure to safeguard against any unwarranted situation of the business. The security of a company does not merely depend upon the physical security and insurance against such perils definitely assures the financial security of the business." ....