TMI Blog2014 (2) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... be admissible - prima facie, it is not disputed that the entire cost of Medical Insurance Policy is included in the cost of production of the goods and for this reason also, the Cenvat credit would be admissible - appellant have a prima facie case in their favour. The requirement of pre-deposit of Cenvat credit demand, interest thereon and penalty , therefore, is waived for hearing of the appeal and recovery thereof is stayed till the disposal of the appeal - Stay granted. - Appeal No.E/60304/2013-EX - Stay Order No. 60298 - Dated:- 24-12-2013 - Shri Rakesh Kumar, J. For the Appellant : Shri Kishore Kunal, Advocate For the Respondent : Shri Devender Singh, AR ORDER Per Rakesh Kumar: The period of dispute in this ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2010 that they have taken Cenvat credit of service tax paid on mediclaim policy of 2008-2009 amounting to Rs.6,34,424/- (Policy No.221000/48/ 08/87/00002892 2893) (RUD-I) and Mediclaim policy of 2009-10 (Policy no.221000/48/09/41/ 00004767) (RUD-2) amounting to Rs.4,56,182/- including Education Cess and SHE Cess. It appears that total amount of Rs.10,09,606/- had been wrongly availed by the party to be recoverable under Rule 14 of Cenvat Credit Rules, 2004. 2. The show cause notice was adjudicated by the Addl. Commissioner vide order-in-original dated 21.02.2012 by which he confirmed the above mentioned Cenvat credit demand along with interest and imposed penalty of equal amount. In this order, the Addl. Commissioner held that the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, Hon ble Karnataka High Court in the cases of CCE, Bangalore-III Vs. Stanzen Toyotetsu India (P) Ltd. reported in 2011 (23) STR 44 (Kar.) and also in the case of CCE, Bangalore Vs. Micro Labs Ltd. reported in 2011 (270) ELT 156 (Kar.) has held that group insurance policy for workers, though welfare measure, is an obligation cast under statute that employer has to obey, and therefore, the insurance policy taken for the workers would be eligible for Cenvat credit, that show cause notice does not make any allegation that the medical insurance policy provided by the Appellant to their workers also covers their family members, that this issue was not considered by the Addl. Commissioner, but was raised for the first time by the Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectly disallowed the Cenvat credit. He also pleaded that the obligation of the manufactures in terms of Employees State Insurance Act, is in respect of their employees only, but not in respect of the family members of the employees and, therefore to the extent the Medical Insurance Policy provided by the Appellant covers the family members of the workers, the same would be a pure Welfare Measure which would not be eligible for Cenvat credit. He, therefore, pleaded that there is no infirmity in the impugned order and as such, this is not a case for waiver from the requirement of pre-deposit. 7. I have considered the submissions from both the sides and perused the records. 8. From para-2 of the show cause notice as reproduced above, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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