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2015 (12) TMI 444 - AT - Service TaxCenvat Credit - service tax paid on insurance premium towards Mediclaim paid by the appellant claimed as Input Service Credit - Held that:- basic logic adopted by the High Courts and the Tribunal is that if the inputs/ input services are taken or provided in pursuance of statutory requirements, then the assessees are duty bound to observe the same and hence credit of duty/service tax paid on such inputs/ input services would be eligible. However, when such inputs/ input services are taken by the employees or offered to the employees as ‘welfare measure’ and is voluntary in nature, the same cannot be held to have any nexus with the ‘Output Service’. Therefore, in such scenario, CENVAT credit of the duty/ service tax on such inputs/ input services would not be available to the assessees. We find fort in the decision of this very Bench of the Tribunal in the case of M/s. One Advertising & Communication Services Limited vs. Commissioner of Service Tax, Ahmedabad - [2012 (5) TMI 219 - CESTAT, AHMEDABAD] - appellant would not be eligible to take CENVAT credit in respect of the Mediclaim which is in the nature of a welfare measure and voluntary, in the instant case. Therefore, we uphold the order of the Commissioner (Appeals) in the said respect. - However, penalty is set aside - Decided partly in favour of assessee.
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