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2019 (12) TMI 122 - AT - Service TaxRefund of unutilized CENVAT credit - input services - Group Medical Insurance - Insurance on assets and business activities - Rent-a-Cab and bus pass - Food coupons/sodexo coupons - extended period of limitation - penalties. Group Medical Insurance - HELD THAT:- This Tribunal in the case of BHARAT FRITZ WERNER LTD. VERSUS COMMISSIONER OF CENTRAL TAX, BANGALORE NORTH WEST COMMISSIONERATE [2019 (6) TMI 67 - CESTAT BANGALORE] has held that cenvat credit is not permissible under the Group Medical Insurance Service. This Tribunal has come to the conclusion that the impugned service falls under the exclusion clause as provided in Clause (c) of Rule 2(l) - appellants are not entitled to cenvat credit of service tax paid on Group Medical Insurance Service. Insurance on assets and business activities - HELD THAT:- The Commissioner (Appeals) has rightly rejected the CENVAT credit to the tune of ₹ 2,27,123/- after examining the various invoices relating to CENVAT credit and there are no infirmity in his findings and therefore appellant is not entitled to cenvat credit on insurance on assets and business activities to the tune of ₹ 2,27,123/- - Credit not allowed. Rent-a-Cab and bus pass - HELD THAT:- This falls in the definition of ‘input service’ as it is directly related to the productivity of the employees working with the appellant and this facility is only from the factory to the residence of the employees and back which in my opinion falls in the definition of ‘input service’ and the exclusion clause is not applicable as far as this service is concerned - Credit not allowed. Food coupons/sodexo coupons - HELD THAT:- These services are in the nature of welfare service and purely for personal consumption of employees as these are perquisites allowed to the employees. Further the Commissioner (Appeals) has given reasons for denying the cenvat credit on sodexo coupon and there are no fault in that and upheld the same - credit not allowed. Extended period of limitation - HELD THAT:- The issue involved in the present case relates to interpretation of the definition of ‘input service’ and therefore extended period cannot be invoked and penalties cannot be imposed - the demand for the normal period of one year is upheld and invocation of extended period is not tenable. Penalties - HELD THAT:- The penalties under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC (1)(c) of Central Excise Act, 1944 set aside. The matter is remanded back to the original authority to re-quantify the demand for the normal period with regard to all the impugned services which the appellant is liable to pay - Appeal allowed in part by way of remand.
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