TMI Blog2014 (9) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... health insurance of the workmen, when employees fall sick, it is necessary that they are provided proper treatment so that they are brought back to work without loss of man hours and desruption of manufacturing lines and the employer may take insurance for arranging proper medical attendance for sick workman or other employees of the company. Therefore, the medical insurance in relation to the employees of the company are also within the broad definition of input service given at Rule 2(l) of the Cenvat Credit Rules, 2004. When there is a direct decision of a High Court [2013 (1) TMI 304 - GUJARAT HIGH COURT], on the particular service in question, it is only proper that the same is followed. Therefore, I follow the decision of the Hon’ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th insurance policy for employees is an input service on which credit can be allowed. There is a similar decision by the same High Court in the case of CCE v. Stanzen Toyotetsu India (P) Ltd. - 2011 (23) S.T.R. 444 (Kar.). He submits that accidental death or even sickness of employees cause disruption in business and can also involve unforeseen expenditure to be met by the appellant. To protect the company against such exigencies these policies are taken and the premium paid goes into manufacturing cost of excisable products and hence this service is needed in relation to manufacture and hence would qualify as input service as defined under Rule 2(1) of the Cenvat Credit Rules, 2004. The learned counsel agrees that the policies covering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xus with the manufacturing activity should be considered as input service. 4. I have considered the arguments of both sides. The definition of input services at Rule 2(l) of the Cenvat Credit Rules, 2004 is as under :- input service means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s this position that has been affirmed by the Hon ble Karnataka High Court in the two judgments cited above. 6. Though the decision of the Hon ble Gujarat High Court in Cadila Healthcare (supra) explains the scope of the expression in relation to business it has not examined with reference to accident insurance health insurance of employees which is the subject matter of this appeal. When there is a direct decision of a High Court, on the particular service in question, it is only proper that the same is followed. Therefore, I follow the decision of the Hon ble Karnataka High Court in this matter and hold that the Service Tax paid on such service which is attributable to insurance premium for employees will qualify to be taken as Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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