TMI Blog2016 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be considered that such insurance is not relation to the manufacturing activity. Even in the case of health insurance of the workmen, when employees fall sick, it is necessary that they are provided proper treatment so that they are brought back to work without loss of man hours and disruption of manufacturing lines and the employer may take insurance for arranging proper medical attendance for sick workman or other employees of the company. In the case of premium attributable to the families of employees it cannot have any direct nexus and will not qualify as input services. By following the judgment of Hon’ble High Court of Karnataka in the case of CCE, Bangalore-III Vs. Stanzen Toyotetsu India (P) Ltd. [2011 (4) TMI 201 - KARNATAKA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit availed by the appellant on impugned service was not in order and sustained the demand along with interest and penalty. Being aggrieved, the appellant is in appeal before this Tribunal. 2. The Ld. Counsel Shri M. Kannan, Advocate, appearing on behalf of the appellant Company reiterates the ground of appeal and submits that the accidental death or even sickness of employees cause disruption in business activities and can also involve unforeseen expenditure to be met by the appellant. To protect the company against such exigencies these policies are taken and the premium paid goes into manufacturing cost of excisable products and hence this service is needed in relation to manufacture and hence would qualify as input service as define ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides and on perusal of record, I find that when employees are at work in the factory, if an accident happens, the employer is liable to pay compensation and a prudent businessman will be interested in taking an accident insurance policy for his workers to cover the business risk and it cannot be considered that such insurance is not relation to the manufacturing activity. Even in the case of health insurance of the workmen, when employees fall sick, it is necessary that they are provided proper treatment so that they are brought back to work without loss of man hours and disruption of manufacturing lines and the employer may take insurance for arranging proper medical attendance for sick workman or other employees of the company. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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