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2023 (2) TMI 732 - AT - Service TaxRecovery of CENVAT credit availed between 2006- 07 and 2010-11 - medi-claim premium paid for procurement of ‘insurance service’ (of family members of employees) - single premium and not floater policy - HELD THAT:- On scrutiny of the rival submissions, it is seen that reliance has been placed by both sides on decisions arising from dispute on availment of CENVAT credit by central excise assessees. There is a substantial difference between the entitlement for availment of CENVAT credit for those entities in contradistinction with the entitlement of service tax assessees. It is on the claim of entitlement, arising from direct or indirect use in manufacture and certain related services deployed in particular contexts, that these decisions had been rendered. Rule 2 of CENVAT Credit Rules, 2004 factors both the provider and the service; for manufacturers, the sole factor is association with manufacturing process. Accordingly, the issue for consideration is utilization of impugned ‘input service’ by a provider for rendering ‘output service’ to a recipient. The decision in EMERSON EXPORT ENGINEERING CENTRE VERSUS COMMISSIONER OF CENTRAL EXCISE [2016 (9) TMI 1134 - CESTAT MUMBAI], emanating from conceding ineligibility for CENVAT credit, does not offer precedent. The impugned order is set aside - appeal is allowed by way of remand to the original authority for re-determination of the credit disallowed in the impugned order.
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