TaxTMI 
TaxTMI 
2017 (1) TMI 695
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....hapter heading 32 and 38 of Central Excise Tariff Act (CETA), 1985 and they are availing the CENVAT credit of tax paid on input and input services. A show-cause notice dated 12.12.2011 was issued to the appellant alleging inter alia that the input service credit availed on certain insurance services like public liability insurance, money insurance, group personal accident insurance, workman compensation insurance, standard fire and special perils insurance, consequential loss policy insurance, etc., is irregular and should be paid along with interest and penalty. The show-cause notice invoked extended period of limitation. The Assistant Commissioner vide Order-in-Original dated 5.6.2013 confirmed the demand of irregular CENVAT credit along ....
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....vices which are required for production alone is contrary to the provisions of CCR, 2004. He also submitted that appellants manufacture chemicals of hazardous and volatile nature and it is mandatory for them to insure their employee/staff/machinery and equipment to mitigate any risk that may occur. Therefore the insurance service being mandatory for them, falls within the scope of input service . In support of his submission, he relied upon the following decisions: i. CCE, Bangalore-III vs. Stanzen Toyotetsu India (P) Ltd.: 2011 (23) STR 444 (Kar.) ii. Coca Cola India (P) Ltd. vs. CCE, Pune-II: 2009 (242) ELT 168 (Bom.) iii. CCE, Hyderabad-IV vs. Deloitte Tax Services India (P) Ltd.: 2008 (11) STR 266 (Tri.-Bang.) 5. On the other han....
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....ies shall be insured in the manner provided by this Act. May be the employees also have to contribute but the employer is under an obligation to take an insurance policy and contribute his share. Therefore, the said Group Insurance Health Policy taken by the assessee is a service which would constitute an activity relating to business which is specifically included in the input service definition. 15. Therefore, merely because these services are not expressly mentioned in the definition of input service, it cannot be said that they do not constitute input service and the assessee is not entitled to the benefit of CENVAT credit. In fact, Rule 3 of the Cenvat Credit Rules, 2004, specifically provides that the manufacturer of final products ....