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2019 (1) TMI 1815 - AT - Service TaxCENVAT Credit - input services - life/health insurance used/utilized for the benefit of the employees - HELD THAT:- The definition of ‘input service’ contained in Rule 2 (l) ibid was substituted vide Notification No. 3/2011 – C.E. (N.T.), dated 01.03.2011 w.e.f. 01.04.2011. Under the substituted rule, services used by a provider of output service was recognized as input service for the purpose of taking of Cenvat credit of the service tax paid thereon. However, in the said definition clause, exclusions were provided with regard to certain services, on which service tax paid cannot be treated as input service. Clause (C) in the definition of input service has excluded life insurance service, when the same are used/utilized primarily for personal use or consumption of any employee. The nature of use of the disputed service has not been properly dealt with by the authorities below. Since, the definition on input service clearly excludes life insurance from its purview, when used for the personal benefit of the employee, in absence of ascertainment of actual use, it is difficult to address the issue in hand, whether the credit should be extended or not. The matter is required to be examined at the original level for correct appreciation with regard to fulfilment of the requirement of the above statutory provision - Appeal allowed by way of remand.
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