2019 (3) TMI 242

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....acture of Sponge Iron falling under Chapter 72 of CETAT, 1985. During the course of departmental audit, it was observed that the appellant has availed CENVAT credit of output services like construction and insurance services which are excluded from the definition of input services under Rule 2(l) of CENVAT Credit Rules, 2004 (CCR). Accordingly, a show-cause notice dt. 03/06/2013 was issued proposing to recover service tax of Rs. 4,82,905/- and also proposing to recover appropriate interest and applicable penalty. The Assistant Commissioner of Central Excise, Bellary vide his Order-in-Original dt. 09/05/2016 confirmed the demand of cenvat credit of Rs. 4,74,664/- along with appropriate interest and imposed penalty of Rs. 4,74,664/-. He also ....

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.... Department has issued the show-cause notice and the description of services were shown under 'construction, erection, erection & commissioning'. He further submitted that the CENVAT credit of Rs. 8,795/- on insurance premium towards insurance of the car of the appellant company is disallowed on the ground that such insurance is not related to the manufacture of final products. He further submitted that the services coming under the meaning and scope of 'erection' and 'erection and commissioning' are not excluded from the scope and definition of 'input service' under Rule 2(l) and disallowance and demand of cenvat credit is contrary to the law and beyond the scope of show-cause notice. For this, he relied upon the following decisions:- i....