Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
Facts:
The appellant, a manufacturer of Iron Castings had a factory in a remote area. They provided vehicles to their senior officials to commute between residence and factory. The appellant availed CENVAT Credit of service tax paid on insurance of such vehicles. Taking a view that there is no nexus between such insurance services and manufacturing activity, the department denied CENVAT Credit on insurance services.
Held:
Tribunal observed that the vehicles were used for company’s work as well as for commutation of senior officials and it was not a welfare activity but was an activity related to business and therefore, CENVAT was held admissible.
