9911796707
TMI Blog2013 (12) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... that this insurance service for providing group insurance/mediclaim/life insurance to the employees is not covered by the definition of input service, issued a show cause notice dated 08/01/2008 for recovery of Cenvat credit alongwith interest and imposition of penalty imposed upon them. Para 2 of the show cause notice clearly mentions that the appellant have wrongly availed Cenvat credit of Rs. 3,65,758/- on the premium paid by the company for the group insurance/mediclaim /life insurance in respect of employees as per Annexure A. Annexure A to the show cause notice also gives details only of the service tax credit taken on insurance services for employees. The show cause notice was adjudicated by the Assistant Commissioner who vide order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to the provisions of this Act, all employees in factories or establishments to which this Act applies, shall be insured in the manner provided in this set, that this provision is applicable to the appellant, that in view of this, the group insurance/mediclaim/life insurance provided by the appellant to their employees is an activity in relation to their manufacturing activity, as without providing the group insurance/life insurance/ mediclaim to the employees, they would not be allowed to carry on manufacturing operations, that for this reason only, the Hon’ble Karnataka High Court in the case of CCE, Bangalore -III vs. Stanzen Toyotetsu India (P) Ltd. reported in 2011 (23) S.T.R. 444 (Kar.) has in para 14 of the judgment held that insu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the insurance policies provided by them also covered the family members of the assessees and hence the judgments of the High Courts cited by the appellant are not applicable. 5. I have carefully considered the submissions from both the sides and perused the records. 6. The allegation against the appellant is contained in para 2 of the show cause notice dated 18/01/2008, the relevant portion of which is reproduced below :- Whereas, during the course of audit conducted by the Head Quarter Audit wing Jaipur, it has been observed that the assessee has taken and availed wrongly Cenvat credit of Rs. 3,65,758/- (Rs. 3,58,503/- + Rs. 7,255/- Edu. Cess) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show cause notice is the foundation of a case and the Adjudicating Authority or Appellate Authority cannot travel beyond the allegation made in the show cause notice. If in this case, the allegation made in the show cause notice is taken as the basis, the issue stands decided in the appellant’s favour by the judgment of Hon’ble Karnataka High Court in the case of CCE, Bangalore -III vs. Stanzen Toyotetsu India (P) Ltd. (supra) and CCE & ST, Bangalore vs. Micro Labs Ltd. (supra). Moreover, when the group insurance/mediclaim/life insurance cover to the employees of manufacturer is a requirement of Section 38 of the Employees State Insurance Act, 1948 and in this case it is not disputed that the provisions of this Act are applicable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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