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2018 (11) TMI 1526 - AT - Service TaxCENVAT Credit - input service - Medical Insurance Service - period prior to 1-4-2011 - Rule 2(l) of the Cenvat Credit Rules, 2004 - Held that:- Even in the case of 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 disruption 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. The Hon’ble Karnataka High Court in the matter of CCE v. Micro Labs Ltd. [2011 (6) TMI 115 - KARNATAKA HIGH COURT] has held that Service Tax paid on group insurance and health insurance policy for employees is an input service on which credit can be allowed. There is no dispute about the fact that the issue in question is prior to 1.4.2011 i.e before the amendment in Rule 2(l) ibid. The definition of input service, post amendment contains exclusion clause and the said exclusion specifically excludes the life insurance/health insurance. The need for exclusion would arise only when such services are otherwise covered by the definition earlier i.e before amendment. Tribunal in the matter of M/s. Wipro Ltd. Vs. CCE, Bangalore-III [2018(4) TMI 149- CESTAT BANGALORE] has observed that the legislature in its wisdom has excluded certain service from the availment of CENVAT credit w.e.f. 1.4.2011, when such service are otherwise covered by the main definition clause of the ‘input service’ - Since the insurance has been specifically excluded post-amendment, this itself shows that it was included in pre-amendment period. Appeal dismissed - decided against Revenue.
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