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2023 (8) TMI 790 - AT - Central ExciseIrregular availment and utilization of Cenvat Credit attributable to certain input services - Employees Health Insurance and Group Accidental Insurance Policy - ‘rent a cab’, Motor Vehicles Insurance - extended period of limitation - suppression of facts or not - HELD THAT:- It is the case of the Appellant that their manufacturing unit is manned by a number number of workers/employees, who are either discharging their duties inside or outside the factory premises in relation to the manufacture and clearance of their dutiable final products. Amongst them some are covered under Employees State Insurance Schemes as per norms laid down in the scheme. Rest remain uncovered from any insurance scheme though they are engaged in various jobs as assigned to them. The company as employer cannot shirk their responsibilities so far the safety and security of the employees is concerned specially if any untoward happening occurs. The employees who are not covered under ESI Scheme are well covered under the insurance policy for any untoward eventuality, therefore, it is also a moral obligation on the part of the employer to look after the welfare of the employees who are working inside or outside of the premises. Moreover, insurance coverage to the employees is mandatorily required as per the Factories Act - it is found that Rule 2(l)(ii)(BA) & (C) of the Cenvat Credit Rules, inter alia excludes life insurance and health insurance from the purview/ambit of the definition of input service when such service is used primarily for personal use and consumption. Extended period of limitation - suppression of facts or not - HELD THAT:- The Department was at liberty to call for any information, put in query, undertook any verification, if felt necessary. All the factors taken together nullified Department’s allegation of willful suppression of facts with intent to evade payment of duty. Accordingly, invocation of extended period is uncalled for - Tribunal in the case of BCH ELECTRIC LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-IV [2013 (9) TMI 551 - CESTAT NEW DELHI] has observed the appellant cannot be accused of suppression of the relevant information as it is not the allegation of the department that the appellant in terms of legal requirements were required to give invoice-wise and item-wise details of Cenvat credit which they have not given. Therefore, only normal limitation period would be available to the department for recovery of ineligible Cenvat credit. The impugned order cannot be sustained and is accordingly set aside. The Appeal filed by the Appellant is allowed on limitation with consequential relief, as per law.
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