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2019 (6) TMI 66 - AT - Central ExciseCENVAT Credit - input services - Insurance on Public liability/Staff - Workmen compensation and Membership fee paid to various associations etc. - denial on account of nexus - period involved is after the amendment in the definition of ‘input service’ - HELD THAT:- The only ground which the learned consultant for the appellant has taken to justify the availment of cenvat credit on Medi-claim Policy for Employees and Group Personal Accident Insurance Policy is that the appellant is statutorily required to take the said policy under various Labour Laws - I find that this argument of the learned consultant has no force in view of the exclusion clause provided in the definition of ‘input service’ w.e.f. 01.04.2011. These services prior to 01.04.2011 have been held to be covered by the definition of ‘input service’. The Legislature in its wisdom has excluded certain services from the availment of cenvat credit w.e.f. 01.04.2011 when such services are otherwise covered by the main definition of the ‘input service’. Penalty - HELD THAT:- The issue involved in the present case relates to interpretation of the definition of ‘input service’ and therefore the imposition of penalty of ₹ 83,000/- under Rule 15(1) of the Cenvat Credit Rules is not justified - Penalty set aside. Demand upheld - penalty set aside - appeal allowed in part.
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