M/S. Balajee Structurals India (P) Ltd vs C.C.E. & S.T.-Raipur
- CitationAppeal No. E/51058/2014-EX(SM)
Ratio decidendi
The rule this decision rests on
Marine insurance services availed by a manufacturer of excisable goods in the course of its manufacturing business are input services under Rule 2(l) of the Cenvat Credit Rules, 2004, and the manufacturer is entitled to Cenvat credit on them; the denial of credit on the ground that the cost of such insurance was not included in the assessable value is not a sustainable basis for refusing credit, where the only allegation in the show cause notice is that the service is an input service.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No. 371/RPR-I/2013 dated 13.11.2013 by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Raipur].
For approval and signature:
Honble Shri Ashok Jindal, Member (Judicial)
1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3 Whether Their Lordships wish to see the fair copy of the Order?
4 Whether Order is to be circulated to the Departmental authorities?
M/s. Balajee Structurals India (P) Ltd. .Appellants
Vs.
C.C.E. & S.T.-Raipur .Respondent
.
Appearance:
Shri Manish Sharan, Advocate for the Appellant
Shri M.S. Negi, DR for the Respondent
CORAM:
Hon'ble Shri Ashok Jindal, Member (Judicial)
Date of Hearing: 02.07.2015
FINAL ORDER NO. 52124/2015-EX(SM)
Per Ashok Jindal:
Heard the parties.
2. The show cause notice was issued to the appellant to deny Cenvat Credit on marine insurance services on the premises that same do not qualify as input services as per Rule 2(l) of the Cenvat Credit Rules 2004. The period in dispute is 2010-11 whereas show cause notice has been issued by invoking extended period of limitation on 20.03.2012. The matter was adjudicated. Cenvat Credit was denied by the Adjudicating Authority holding that Marine Insurance Services is not an input service. On appeal before the Ld. Commissioner (A) held that as the cost of Marine Insurance has not been included in the assessable value. Therefore, appellant is not entitled to take Cenvat Credit.
3. I have perused the show cause notice. In the show cause notice the only allegation against the appellant is that the Marine Insurance Services is input services as per Rule 2 (l) of the Cenvat Credit Rules 2004. In these circumstances, relying on the decision of Honble High Court of Bombay in the case of CCE Nagpur Vs. Ultratech Cement Ltd.-2010 (260) ELT 369 (Bom) wherein the it was held that any services availed by manufacturer of excisable goods during the course of their business is entitled to take Cenvat credit on marine insurance services as same has been availed by the appellant in the course of their business of manufacturing of excisable goods.
4. With these terms, I set aside the impugned order and allow the appeal with consequential relief if any.
(Dictated and pronounced in the open court)
(Ashok Jindal) Member (Judicial)
Bhanu
2
E/51058/2014-EX(SM)
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free