Custom, Excise & Service Tax Tribunal
M/S. Skd Lakshmanan Firework ... vs Cce, Tirunelveli on 14 March, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No. E/42200/2013
(Arising out of Order-in-Appeal No.209/2013 dated 31.7.2013 passed by the Commissioner of Central Excise (Appeals), Madurai)
M/s. SKD Lakshmanan Firework Industries Appellant
Vs.
CCE, Tirunelveli Respondent
Appearance None for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Date of Hearing / Decision: 14.03.2016 Final Order No. 40444 / 2016 None present for the appellant.
2. Record reveals that the service tax paid to avail transit insurance service and also personal accident insurance service has been claimed as CENVAT credit.
3. Both the authorities denied the claim.
4. There is nothing examined by the authorities below as to whether it was the liability of the appellant to make delivery of the goods at the buyers point so that transit insurance shall be liability of the appellant. This aspect has not been examined. For the guidance of the adjudicating authority, he may refer to Final Order No. 40353 to 40379/2016 dated 2.2.2016 in the case of CCE, Chennai II Vs. M/s. LUCAS TVS Ltd. to settle the dispute as to whether the provisions of Sale of Goods Act enables the appellant to transfer the right, title and property over the goods at the buyers delivery point. If that is the obligation, then transit insurance shall be allowed. Otherwise, appropriate order may be passed.
5. So far as personal accident insurance service is concerned, none of the authorities have examined to ascertain who are the beneficiaries of the policy. If the beneficiaries are workers other than family members there cannot be denial of CENVAT credit of service tax paid to avail such service.
6. To make a threadbare examination and to consider the defence plea if any, the matter is remanded to the adjudicating authority who shall pass appropriate order granting fair opportunity of hearing to the appellant and shall pass the order considering the material facts, evidence as well as law. (Dictated and pronounced in open court) (D.N. Panda) Judicial Member Rex 2