TaxTMI 
TaxTMI 
2016 (12) TMI 212
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.... Appellant. Sh. Arun Kumar, Deputy Commissioner (AR) for the Respondent. [Order per: Sulekha Beevi, C.S.] The appellant is engaged in the manufacture of cement and clinker and they are availing CENVAT Credit on capital goods, inputs and input services. During the course of audit it was noticed by the department that appellant had irregularly availed credit to the tune of Rs. 1,01,200/- un....
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....y. The said insurance though a life insurance policy being a Keyman Insurance Policy (KIP) is taken in the name of Sh. Venkata Vishnu Raju Kalidindi, Managing Director of the company. He explained the nature of the KIP and the purpose for which the said policy was availed. He submitted that the Managing Director being a key employee of the organization the said policy is a special plan of insuranc....
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....lant by way of any statutory obligation to avail such a policy. He vehemently contended that such service would fall within the exclusion portion of the definition as it is availed for the personal consumption of an employee / Managing Director of the company. That therefore the authorities below have rightly denied credit. 4. I have heard the rival submissions made before me. The definition of....
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....tention is to meet the crisis which the company may undergo due to the death/loss of key person. From the very object of keyman insurance it is evident that the service is availed for protecting the loss that may occur to the company in the event of death of the keyman. Needless to say that the Managing Director of the company falls within the category of keyman of the organization. In such circum....