COMMISSIONER OF C. EX. Vs. MAHAMAYA STEEL INDUSTRIES

JUDGEMENT

(1.) REVENUE has filed this appeal against impugned order, wherein the input service credit on insurance policy for workmen's compensation was allowed by the Lower Appellate Authority. As the amount involved in this case is only Rs. 8,486/ - but as per pursuance of the Revenue, matter is to be disposed of on merits only. Accordingly, the matter is taken up on merits.

(2.) The ld. DR reiterated the ground of appeal and submitted that insurance policy for workmen's compensation is no way related to the manufacturing activity. Hence sought the denial of Input Service Credit as per Rule 2(1) of the CENVAT Credit Rules, 2004.

(3.) ON the other hand, the authorized representative of the Respondent submits that the Insurance Policy for Workmen's Compensation has been taken for the workers, who are involved in manufacturing process and to cover the risk of those workers, the policy has been obtained by the Respondents. Hence it is directly related to the manufacturing process and as per Rule 2(1) of the CENVAT Credit Rules, 2004, the Respondents are entitled for input service credit on Insurance premium for Workmen's Compensation.