AI Drafter 
TaxTMI 
TaxTMI 
2017 (3) TMI 60
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Zinc falling under Chapter 79 & 79 respectively of the Central Excise Tariff Act, 1985. During the period in dispute, the assessee-Appellants availed Cenvat credit on the invoices issued by Input Service Distributor for the following insurances, which were used for the purposes indicated below : (a) Plant & Machinery Insurance - This was taken to avoid the risk of loss of the plant, machines and various structures located in the plant, which are vital for the production processes undertaken by the Appellant. This insurance also covered stock of raw materials, fuel etc.; (b) Marine Insurance - This was taken to cover the risk of transportation of goods by rail, road, air/high seas. This also incl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is squarely covered by the ratio of judgment in assessee-Appellants' own case reported in 2015 (37) STR 608 (Tri.-Del), wherein it was observed that : "8.1 Coming first, to the finding of the Commissioner that service for being Cenvatable, must have been used in or in relation to the manufacture of final product and that insurance services having no nexus whatsoever with the manufacture of final product are not eligible for Cenvat credit, we find that this finding of the Commissioner is contrary to the law laid down by the Hon'ble Bombay High Court in the case of CCE v. Ultra Tech Cement (supra), wherein the Hon'ble Bombay High Court while considering the eligibility of outdoor catering service for Cenvat credit, has in para 28....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o qualify as input service must be used in or relation to the manufacture of final product is not correct, as any service used in or in relation to the business of manufacture of final products would be an eligible 'input service. In this judgment, the Hon'ble Bombay High Court also considered the Apex Court's judgment in the case of Maruti Suzuki Ltd. reported in 2009 (240) E.L.T. 641 (S.C.) and observed that Revenue's contention based on this judgment of the Apex Court that 'input service' in order to qualify for Cenvat credit must be only those services which have nexus with the manufacture of final products is not correct as unlike the definition of 'input' which is restricted to the input used directly or indirectly in or in relatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....td. (supra). Moreover, Group insurance of the employees against accident or sickness is the requirement of Section 38 of the Employees State Insurance Act, 1948, which a manufacturer has to comply with and accordingly, this service would have to be treated as a service used in or in relation to the manufacture of final products whether directly or indirectly, as a manufacturer would not be allowed to carry on manufacturing operations unless he complies with the requirements of Section 38 of the Employees State Insurance Act, 1948. 10. Coming to the second ground on which the Commissioner has disallowed the Cenvat credit in respect of the insurance services, the Commissioner's view is that the amendment to Rule 2(l) of Cenvat Credit ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al's judgments in cases of Finolex Cable Ltd. v. CCE reported in 2009 (14) S.T.R. 303 (Tri. - Mum.) and Millipore India Ltd. reported in 2009 (13) S.T.R. 616 (Tri. - Bang.) = 2009 (236) E.L.T. 145 (Tri. - Bang.) with regard to legibility for Cenvat credit of the Insurance of plant and machinery; and (b) Judgments of Hon'ble Karnataka High Court in case of CCE, Bangalore-III v. Stanzen Toyotetsu India (P) Ltd., reported in 2011 (23) S.T.R. 444 (Kar.) and CCE, Bangalore v. Micro Labs Limited reported in 2011 (24) S.T.R. 272 (Kar.), in respect of eligibility for Cenvat credit of employee's group insurance; had been cited before the Commissioner (as mentioned in para 11 of the order-in-original), he has either ignored these ju....