TMI Blog2014 (4) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... pensate the employee. If the employer employs its own transportation facility in order to cover the risk which also includes the risk of workers who are covered in that statutory establishment, he has to take the insurance policy without which the vehicle cannot go on the road. Under the Workmen’s Compensation Act he has to obtain the Insurance Policy covering the risk of the employees. The Employee State Insurance Act takes care of the health of the employees also and casts an obligation on the employer to provide insurance services. Under these circumstances, this Group Insurance Health Policy though is also a welfare measure is an obligation which is cast under the Statute that the employer has to obey. Section 38 of the Employees St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to September 2010. 2. The Revenue has raised the following substantial question of law for our consideration in the present appeal: Whether, the Tribunal was correct in allowing CENVAT Credit on Insurance Services for payment of Service Tax on output service viz., Manpower recruitment or Supply agency services wherein such services do not have any nexus for providing the output service and do not qualify as input service as per Rule 2(1)(i) of CENVAT Credit Rules, 2004.? 3. Sri. P. B. Harish, learned counsel appearing for the respondent, at the outset, submitted that the substantial question of law raised in this appeal is fully covered by two judgments of the Division Bench of this Court reported 2011 (24) S.T.R 272 (K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices. Under these circumstances, this Group Insurance Health Policy though is also a welfare measure is an obligation which is cast under the Statute that the employer has to obey. Section 38 of the Employees State Insurance Act, 1948, mandates that subject to the provisions of the Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act. May be the employees also have to contribute but the employer is under an obligation to take an Insurance policy and contribute his share. Therefore, the said Group Insurance Health Policy taken by the assessee is a service which would constitute an activity relating to business which is specifically included in the input service defin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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