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Reliance Industries Ltd. Versus Commissioner, Central Excise & Service Tax (LTU) , Mumbai

2015 (11) TMI 969 - CESTAT MUMBAI

Denial of CENVAT Credit - whether the appellant is eligible to avail CENVAT credit of the service tax paid on insurance premium to the Insurance Company for Group Insurance and medi-claim policies taken for existing employees as well as for the retired employees; also on the service tax paid on the insurance premium for the policy taken for stocks lying in the foreign warehouses - Held that:- In respect of the service tax paid on the premium of the life insurance/medi-claim taken for the existin .....

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having taken a view that the appellant is eligible to avail CENVAT credit, following the same, we hold that the appellant is eligible to avail CENVAT credit of the service tax paid on the premium of the insurance cover extended to their employees who are retired. - CENVAT credit sought to be denied by both the lower authorities is not in consonance with the law. Accordingly, we set aside the impugned order - Decided in favour of assessee. - APPEAL NOS. ST/722 TO 725/2010, APPLICATION NOS. ST/EX .....

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disposal. 2. Heard both sides and perused the records. 3. The issue involved in these cases is whether the appellant is eligible to avail CENVAT credit of the service tax paid on insurance premium to the Insurance Company for Group Insurance and medi-claim policies taken for existing employees as well as for the retired employees; also on the service tax paid on the insurance premium for the policy taken for stocks lying in the foreign warehouses. Adjudicating authority as well as the first app .....

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e lower authorities that the same is ineligible as the expenses incurred are beyond the place of removal of final products i.e. port of export and does not get covered under the definition of 'input services' under Rule 2(l) of the Cenvat Credit Rules, 2004. 5. We find that in respect of the service tax paid on the premium of the life insurance/medi-claim taken for the existing employees as well as the retired employees or the employees who had taken voluntary retirement is now eligible .....

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igible to avail CENVAT credit of the service tax paid on the premium of the insurance cover extended to their employees who are retired. 5.1 As regards the service tax credit availed on the amount of insurance premium paid on the stocks which were lying in warehouses in foreign countries, we find that the lower authorities have mis-directed their findings, without considering the fact that the said services would get cover under the Taxation of Services (Provided from Outside India and Received .....

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se specified in clause (ii) of this rule, be such services as are received by a recipient located in India for use in relation to business or commerce. It is to be noted that insurance services are one of the services that are covered under Taxation of Services Rules, but got excluded as clause (c) as reproduced herein above. 5.2 We find strong force in the contentions raised by the appellants that it is not in dispute that the services were used in relation to business or commerce. We also find .....

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so that the provisions of Chapter-V of the Finance Act, 1994 can be applied to. The charging section remains Section 66, even for the service imported. In other words, the tax collected from the recipient in terms of Section 66A, is also tax chargeable under Section 66 of the Finance Act, 1994 and thus there is no mistake in the relevant provision of the Cenvat Credit Rules, 2004 and that credit of tax paid on imported services should be allowed, if they are in the nature of input services." .....

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