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2019 (10) TMI 219 - CESTAT BANGALORECENVAT Credit - input services - Group Medical Insurance Service - Catering services - Transportation of Employees - extended period of limitation - penalties. Group Medical Insurance - HELD THAT:- This Tribunal in the case of BHARAT FRITZ WERNER LTD. VERSUS COMMISSIONER OF CENTRAL TAX, BANGALORE NORTH WEST COMMISSIONERATE [2019 (6) TMI 67 - CESTAT BANGALORE] has held that cenvat credit is not permissible under the Group Medical Insurance Service - This Tribunal has relied upon the decision of the Larger Bench in the case of M/S. WIPRO LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE BANGALORE-III. [2018 (4) TMI 149 - CESTAT BANGALORE] and then come to the conclusion that the impugned service falls under the exclusion clause as provided in Clause (c) of Rule 2(l). Therefore, by following the ratio of the said decision in the case of Bharat Fritz Werner Ltd., it is held that the appellants are not entitled to cenvat credit of service tax paid on Group Medical Insurance Service - credit not allowed. Catering service - HELD THAT:- Larger Bench decision of the Tribunal in the case of Wipro Ltd. wherein the Tribunal after considering the exclusion clause provided in Clause (c) w.e.f. 01.04.2011 has held that Outdoor Catering Service is not eligible for input service credit post amendment dated 01.04.2011. Therefore, Commissioner has rightly denied the credit on Catering Service - credit not allowed. Transportation of Employees - HELD THAT:- This falls under the definition of ‘input service’ as it is directly related to the productivity of the employees working with the appellant and this facility is only from the factory to the residence of the employees and back which in my opinion falls in the definition of ‘input service’ and the exclusion clause is not applicable as far as this service is concerned - Therefore, by relying upon the ratios of the M/S RELIANCE INDUSTRIES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, LTU, MUMBAI [2016 (8) TMI 123 - CESTAT MUMBAI], it is held that the appellants are entitled to cenvat credit of service tax on this service. Extended period of limitation - Penalties - HELD THAT:- The issue involved in the present case relates to interpretation of the definition of ‘input service’ and therefore extended period cannot be invoked and penalties cannot be imposed. Demand for the normal period set aside - the invocation of extended period is not tenable in the present case and also the penalties under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC (1)(c) of Central Excise Act, 1944 is set aside. The matter remanded back to the original authority to re-quantify the demand for the normal period with regard to all the impugned services which the appellant is liable to pay - appeal allowed in part.
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