TaxTMI 
TaxTMI 
2019 (6) TMI 194
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....t are engaged in the manufacture of goods falling under Chapter 27, 29,39,54 and 55 of the CETA, 1985 and has Petrochemical Plant at Vadodara. They had taken insurance policies as detailed hereunder : i. Marine Open Policy ii. Survey Fees/ Inspection of goods/ Machinery iii. Mega policy for building plant machinery, stocks & stocks in process and business interruption iv. Standard Fire & Special Peril Insurance v. Marine Hull Policy vi. Comprehensive Off Shore Package Policy (Relating to Off Shore assets and business interruption) vii. Terrorism Risk Industrial Policy viii. Crude Oil/ LSFO Transit Insurance ix. Stock Policy-Liquid and Solid Policy x. Coverage of AGM xi. Electric Equipment Policy xii. Professional Fee....
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.... of petrochemical complex. The input service definition nowhere excludes the subject insurance services from its purview. He relies upon the Tribunal order in case of Anglo French Drugs & Industries 2017 (3) GSTL 147 (TRI) wherein cenvat credit of service tax paid on various insurance services has been allowed. He also relies upon Tribunal judgment in their own case as reported in 2016 (45) STR 383 and Hon'ble Gujarat High Court's order in Tax Appeal No. 630 of 2017. He submits that in their own case the Mumbai Tribunal vide Order No. A/225/14/EB/C-II dt. 03.03.2014 and Order No. A/3989 - 3990/15/EB DT. 01.12.2015 wherein period of Nov'08 - Mar'13 & Mar'13 - Mar'14 was involved has allowed the credit on general insurance policies holding th....
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....f cost of goods manufactured and would merit classification as "Input Service". Unless and until a business is safeguarded against risk and losses it cannot work continuously. Moreover we find that in the Appellant's own case the Tribunal vide Order dt. A/10371-10373/2017 dt. 20.01.2017 has allowed the credit on advertising agency service, insurance auxiliary service, air travel agent service, cable operator, clearing and forwarding agent services etc. by relying upon Appellant's own case as reported in 2016 (45) STR 383. The Tribunal in case held that the services used in relation to business activity would merit consideration as "Input Service". We find that in case of Anglo French Drugs & industries 2017 (3) GSTL 147 (TRI), the credit on....
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....ction 14AA of the Central Excise Act, they can conduct special audit where the credit of duty availed of or utilised is not within the normal limits or such credit has been availed by reason of fraud, collusion or any willful misstatement or suppression of facts. The department has not invoked these powers available to it. In these circumstances, we are of the view that the matter has to go back to the adjudicating authority either to consider the Cost Accountant's Certificates furnished by the appellant or to undertake special audit in terms of the powers of Section 14AA of the Central Excise Act and satisfy himself as to the eligibility of the credit taken by the appellant on these various services. Accordingly, we remand the case back to....