2024 (9) TMI 178

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....-in-appeal dated 14.11.2018 issued on 06.12.2018. 2. Brief facts of the case are that the appellant is manufacturer of excisable goods such as motor vehicles falling under Chapter 87 of Central Excise Tariff Act, 1985 and was also availing the facility of cenvat credit. During the period from April 2005 to August 2009, appellant was issued with three show cause notices wherein there was a proposal for denial of cenvat credit of Rs.31,60,453/- availed by the appellant on service tax paid on insurance premium obtained for outbound movement of final products. Out of the said cenvat credit, cenvat credit of Rs.25,78,094/- pertained to the period from 2005-06 to 2007- 08. For the period 2007-08 to March 2011, four show cause notices were issued....

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....or the final product during its transportation from factory gate to dealer's premises to cover the risk of loss or damage of final product and availed cenvat credit of service tax paid on such insurance premium. He has submitted that for the period upto 1st March 2008 cenvat credit facility was available for outward transportation of goods and, therefore, service tax paid on associated insurance should also be available to the appellant. He has relied on ruling by Hon'ble Supreme Court in the case of Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd. reported at 2018 (11) GSTL 3 (SC) and submitted that Hon'ble Supreme Court has held that upto 01.03.2008 the term "from the place of removal" was not substituted by the term "....

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.... manufacturer. Further, in respect of cenvat credit of service tax paid on hospitality and management services received at residential colony of employees, he has submitted that Hon'ble Andhra Pradesh High Court in the case of Commissioner of Customs & Central Excise, Hyderabad-III vs. ITC Ltd. reported at 2013 (32) STR 288 (AP) has held that such type of cenvat credit is admissible to the manufacturer. 4. Heard the learned AR. Learned AR has submitted that cenvat credit of service tax paid on outbound transit insurance is not admissible to the appellant and they have relied on the ruling by Hon'ble Supreme Court in the case of Commissioner of Customs & Central Excise, Nagpur vs. Ispat Industries Ltd. reported at 2015 (324) ELT 670 (SC) an....

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....id on insurance premium on outbound transportation of final product, I find that the ruling by Hon'ble Supreme Court relied upon by Revenue in the case of Ispat Industries Ltd. (supra) is dealing with the provisions of Section 4 of Central Excise Act, 1944 and is not dealing with admissibility of cenvat credit. Therefore, I do not find the said ruling squarely applicable in the present case. Further I find that Revenue has relied on the ruling by Hon'ble Supreme Court in the case of Ultra Tech Cement Ltd. (supra) where I find that Hon'ble Supreme Court has relied on Hon'ble Supreme Court's ruling in the case of Commissioner of Central Excise, Belgaum vs. Vasavadatta Cements Ltd. which has been relied upon by learned counsel for the appellan....