Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 1099 - AT - Central ExciseCENVAT Credit - input services or not - staff insurance services being availed by the appellant for its employees - Rule 2 (l) of Cenvat Credit Rules, 2004 - HELD THAT:- The bare perusal of rule 2 (l) of CCR, 2004, shows that no doubt the insurance services as taken by the appellant in the present case have specifically been excluded but the said exclusion applies if and only if the insurance service is used primarily for personal use or consumption of an employee. The Commissioner (Appeals) order is miserably silent about any finding for the impugned services to specifically be for the personal use of the employee/ employees of the appellant. The issue is otherwise no more res integra. This Tribunal in M/S HYDUS TECHNOLOGIES INDIA PVT LTD. VERSUS CCE, C & ST, HYDERABAD-II [2017 (2) TMI 538 - CESTAT HYDERABAD] has specifically held that unless there is some document to establish that the insurance services are availed for personal use or personal consumption of the employee, the services shall be eligible input service as those are the part of provident fund Scheme and provides maximum payments to the insured persons nominated beneficiary in the event of death due to natural cause accident or illness. Department has not produced anything on record to show that the services of Provident Fund were availed for the personal benefit of employees whereas what is apparent from the documents and contentions of the appellant that the life insurance services were availed by appellant for all of its employees under statutory mandate and not for the individual and personal consumption. Commissioner (Appeals) has failed to appreciate the statutory mandate of the appellant being the employer to get insured its employees - appeal allowed - decided in favor of appellant.
|