TaxTMI 
TaxTMI 
2017 (5) TMI 806
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....ing under chapter heading 78 & 79 respectively of the Central Excise Tariff Act 1985. 3. During the period under consideration the appellant availed Cenvat Credit on the invoices issued by the input service distributor (ISD) for the following insurances, which were used for the purposes indicated below: i) Plant and Machinery Insurance ii) Marine Insurance iii) Cash-in-transit / safe Insurance 4. The same were disallowed by the Department. Being aggrieved the appellant has filed the present appeal. 5. With this background, we have heard Shri Dhruv Tiwari, Consultant from the appellant, Shri Dharam Singh, DR for the respondent. 6. After hearing both the parties and on perusal of the records, it appears that an identical issue has appe....
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....t extends to all services used in relation to the business of manufacture of final product; (b) the expression „activities relating to business‟ in the definition of „input service‟ postulates activities which are integrally connected with the business of assessee and if an activity is not integrally connected with the business of the manufacture of final product, that service would not qualify to be an input service under Rule 2(l) of the Cenvat Credit Rules; and (c) the expression "activities relating to business" in the inclusive portion of the „input service‟ widens the scope of 'input service' so as to cover all services used in the business of manufacturing of final product and that the said defin....
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....y as an input service. Insurance of plant and machinery, goods in transit, cash in transit and insurance of vehicles and laptop, is an integral part of manufacturing business, as no manufacturer would carry on manufacturing operations without insurance of plant & machinery, cash in transit, goods in transit, vehicles & computers, etc. against any loss due to accident, natural calamities, etc. In view of this, the services of plant and machinery, transit insurance of goods, insurance of cash in transit, laptop, etc. have to be treated as an activity related to the business and would be eligible for Cenvat credit. 9. As regards, the Group Insurance of all Employees against sickness or accident, the same has been held as Cenvatable by the jud....
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....sioner, other than citing the judgments of the Tribunal in the case of Vandana Global Ltd. (supra) and J.K. Synthetics reported in 1996 (88) E.L.T. 785 has not given any reason whatsoever as to how the deletion of the expression "activities relating to business" in Rule 2(l) and its amendment w.e.f. 1-4-2011 has to be treated as of clarificatory nature and hence, having retrospective validity. 11. In view of the above discussion, we hold that the impugned order is not only sustainable but is an absurd order passed without any application of mind. What we find more disturbing is that though the judgments of Tribunal and High Court with regard to eligibility of various insurance services for Cenvat credit :- (a) Judgment of Larger Bench of ....