2024 (7) TMI 471

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....e linings, railway brake blocks etc. and avail CENVAT credit on the inputs, capital goods and input services under CENVAT Credit Rules, 2004. During verification, it was found that they have availed CENVAT credit on the service tax paid on the premium paid on product liability insurance policy of goods during August 2012. As it appeared that the said service do not qualify as  'input service' defined under Rule 2(l) of CCR, 2004, proceedings were initiated by issuance of Show Cause Notice. After due process of law, the original authority confirmed the demand of Rs.2,91,509/- along with interest and imposed penalty of Rs.30,000/- under Rule 15(1) of CCR, 2004. Aggrieved by the order, appellant preferred appeal before Commissioner (Appea....

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....g Ltd. Vs. CGST & Central Excise, Puducherry - 2018 (11) TMI 1028 - CESTAT Chennai c. Rane Brake Lining Ltd. Vs. CGST & Central Excise, Chennai North - 2019 (2) TMI 253 - CESTAT Chennai She prayed that the impugned order may be set aside. 3.2 The learned AR supported the order passed by the authorities below. He prayed that the appeal may be rejected. 4. I have heard the rival parties. The issue raised by revenue is that the Product Liability Insurance is a service not used in or in relation to the manufacture of the final product and clearance up to the place of removal. It is seen from the definition of 'input service' as per Rule 2(l) of the CCR 2004 that the term 'upto the place of removal' is specific to 'outward tran....