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2014 (5) TMI 715 - AT - Central ExciseCENVAT Credit - Group Insurance Scheme - whether the appellant is eligible for the benefit of credit of service tax paid on Group Health Insurance Policy obtained by them in respect of their employees and their family members - Held that:- Section 38 of the ESI Act requires all employees to be insured. This shows that it is not obligatory for an employer to insure that the employees family also are covered. When an employee is covered by ESI Act no doubt his family is also eligible. However it does not mean that there is a statutory obligation on an assessee to provide insurance coverage to the families of employees and Section 38 requires only employees to be covered. Therefore the submission relating to ESI Act cannot be accepted - if the credit is not admissible, the question of examination as to whether such expenditure forms cost of production does not arise. In this case after examining the definition and the relevant statutory provisions, what is seen is that the service tax paid on Group Health Insurance for the family of the employees can in no way be held to be relatable to the business of manufacture of an assessee - Matter remanded back for re quantification - Decided partly in favour of assessee.
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