TMI Blog2015 (7) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... premium so paid in the present appeal has formed part of the cost of excisable goods on which Excise Duty has been paid on removal. Therefore, the appellant is entitled to avail, Cenvat credit for the insurance premium paid in respect of group insurance/insurance of employees including retired employees/mediclaim which are covered under the definition of ‘input services’ and have a nexus. - Decided in favour of assessee. - E/1283/2012-Mum - Final Order No. A/45/2015-WZB/SMB - Dated:- 2-1-2015 - Shri Anil Choudhary, Member (J) Shri J.C. Patel with Ms. Shilpa Balani, Advocates, for the Appellant. Shri S. Dewalwar, Additional Commissioner (AR), for the Respondent. ORDER The appellant, Reliance Industries Ltd., is a manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per CAS-4, all non-monetary benefits extended to factory employees are regarded either as direct wages and salaries or as works overhead or administrative overhead, related to production activity and form part of cost of manufacture of final product. Once the expenditure in dispute forms part of the final product, it has to be presumed that the expenses are incurred in relation to such services in relation to manufacture of final product, as has been observed by the Hon ble Bombay High Court in the case of Coca Cola India Pvt. Ltd. v. CCE, Pune-III reported in 2009 (15) S.T.R. 657 (Bom.) = 2009 (242) E.L.T. 168 (Bom.). The Hon ble High Court dealing with advertisement cost, held that credit is availed on the tax paid on the input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein provision for retirement benefits such as gratuity and superannuation is also provided. This Tribunal also held that CAS-4 has considered all the services such as medical benefit, subsidized food, education allowance etc., to form part of the cost of the final products, and accordingly held that these services which have been received were rendered only in relation to manufacture of final products. Further, it was noted that the definition of input service is very broad. The said ruling was challenged by the Revenue before the Hon ble Karnataka High Court and the Hon ble High Court vide its order dated 11-4-2011 reported at 2012 (26) S.T.R. 514 (Kar.), observed that it is clear in view of CAS-4 that those factors have to be taken int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e import. The learned AR further stresses that there has to be a nexus between the expenditure and the manufacture. The element of nexus is absent with respect to insurance premium paid for securing the life/health of the retired employee. 3. Having considered the rival submissions, I agree with the ruling of the Hon ble Karnataka High Court in the case of Millipore India Ltd. (supra), wherein, after examining the CAS-4 Standards, the Hon ble High Court accepted that all factors have to be taken into consideration while fixing the cost of the final products. The Hon ble High Court further observed that the definition of input services is too broad. Further it is not disputed in the facts of the case that the premium so paid in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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