CCE Vs. RAIPUR ROTOCAST LTD.

JUDGEMENT

(1.) THIS is an appeal filed by the Revenue against order -in -appeal No. 90(ST)RPR -I/07 dt. 15.11.07 passed by Commissioner (appeals), Raipur by which Ld. Commissioner (appeals) set aside the order -in -original dt. 29.6.07 disallowing the Cenvat credit to the respondent in respect of certain insurance services. The respondents are manufacturer of Steel Shots, Steel Grits, Rough Steel Castings, Steel Ingot, Runners & Risers and Iron Castings falling under Chapter 72, 73 & 84 of Central Excise Tariff and they took input duty Cenvat credit in respect of duty paid input goods and input services. The respondents took Cenvat credit of the service tax on the insurance premium in respect of -

(2.) IN respect of this appeal filed by the Revenue, the respondent have also filed the Cross Objection registered as ST/CO/158/08 -SM. The respondent vide letter dt. 26.5.09 informed that the appeal may be decided on merits taking into account the submissions made by them in the Cross Objection.

(3.) I have carefully considered the submissions made by the Ld. DR and the pleas made by the respondent in their memorandum of cross objection and also perused the record. Though insurance is not mentioned in the definition of the "input service" as given in Rule 2(1) of Cenvat Credit Rules, 2004 I find that the definition of input service Rules has two limbs and second limb is - "services used in relation to setting up, modernization, renovation or repairs of factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, inward transportation of inputs or capital goods and outward transportation upto the place of removal", thus in the second limb of the definition covers the "activities relating to business" and the list of the activities relating to business as given in the definition is not exhaustive. The insurance of the capital goods whether in the factory or in transit and similarly the group insurance of the workers and the staff is very much part of the business activity and every manufacturer or service provider has to use these services for his business. Therefore, I agree with the Commissioner (Appeals)'s findings that these services are covered by the expression - "activities relating to business" and hence the same are covered by the definition of "input service". I find that same view has been taken by the Tribunal in the case of Millipore India Ltd. v. CCE, Bangalore reported in : 2009 (13) STR 616 wherein it was held that since the services of medical and personal accident policy, group personal accident policy and insurance are taken into account while determining the cost of the goods under CAS -4 the same have to be treated as "input services". In view of the above discussion, I do not find any infirmity in the impugned order. The Revenue's appeal is dismissed. The Cross Objection also stand disposed of as above.