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2018 (10) TMI 563
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.... had availed input service credit on insurance services for an amount of Rs. 7,73,832/- for the period from April 2014 to March 2015. It appeared to the department that general insurance / insurance auxiliary services are not covered within the definition of input service and therefore the appellants are not eligible for the credit. Show cause notice dated 19.4.2016 was issued proposing to disallow the credit and recover the same along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand of Rs. 7,73,832/- by disallowing the credit and ordered for recovery of the same along with interest and imposed penalties. In appeal, Commissioner (Appeals) allowed part of the credit to the tun....
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....moved from their factory premises to the customer premises and the insurance policy was availed for transit of such goods. The department has denied the services alleging that the appellant has not proved the nexus for providing the output service as well as for the reason that insurance service are excluded from the definition of input service. She argued that only those insurance services such as life insurance, health insurance which are for personal consumption of the employee are excluded from the definition of input service. Since these transit insurance policies are necessary for the appellant to move the goods for providing the output service, the same are eligible for credit. 3. The ld. AR Shri L. Nandakumar supported the findin....