TMI Blog2019 (3) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of M/s. Wipro Ltd. Vs. CCE, Bangalore-III [2018 (4) TMI 149 - CESTAT BANGALORE] has observed that the legislature in its wisdom has excluded certain service from the availment of CENVAT credit w.e.f. 1.4.2011, when such service are otherwise covered by the main definition clause of the ‘input service’. Meaning thereby that the need to exclude certain services from the definition of ‘input service’ through amendment arises only when it was included earlier i.e. pre-amendment. Since the insurance has been specifically excluded post-amendment, this itself shows that it was included earlier. Credit allowed - appeal allowed - decided in favor of appellant. - APPEAL NO: ST/87234/2018 - A/85446/2019 - Dated:- 11-3-2019 - Shri Ajay Sharma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n wrongly availed by the Appellant since the service on which credit has been availed i.e. Group Health Insurance for employees do not fall in the requirement of being used in or in relation to the manufacture . The learned Chartered Accountant for the Appellant submitted that the Appellant have taken up Group Medical Insurance Policy for the betterment of their employees. He further submitted that the Medical insurance is necessary as it forms part of activities relating to business and there is direct nexus between the said expenditure and the business of the Appellant s firm and that there is no dispute regarding the input service credit document and the payment of service tax. 4. The disputed period with regard to the denial of Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any accident happens, the employer is liable to pay compensation and a prudent businessman will be interested in taking an accident insurance policy for his worker 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 medical treatment so that they are brought back to work without loss of man hours and disruption of manufacturing lines. Therefore, the medical insurance in relation to the employees of the company also falls within the broad definition of input service given at Rule 2(l) of the Cenvat Credit Rules, 2004. 5. The Hon ble Karnataka Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishments 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 definition. 15. Therefore, merely because these services are not expressly mentioned in the definition of input service it cannot be said that they do not constitute input service and the assessee is not entitled to the benefit of CENVAT credit. In fact, Rule 3 of the Cenvat [Credit] Rules, 2004, specifically provides tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urance, the decision of the Hon ble High Court of Bombay in the case of Ultratech Cement - 2010-TIOL-745-HC = 2010 (20) S.T.R. 577 (Bom.) = 2010 (260) E.L.T. 369 (Bom.) is squarely applicable wherein it has been held that any input service availed by the assessee in course of their business is entitled for input service credit. It is not disputed by the lower authorities that these services are availed by the assessee in the course of their business, hence denial of input service on these two above services is not sustainable. The impugned order denying the input service credit on local travel and medical insurance and on input service availed on April 2006 is set aside and the appeals of assessee are allowed with consequential relief. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision taken by the Tribunal taking the view that Cenvat credit is admissible. Moreover, the Hon ble High Court of Karnataka in the case of Stanzen Toyotetsu India (P) Ltd. [ 2011 (23) S.T.R. 444 (Kar.)] also took the same view. We find ourselves in agreement with the submissions. Therefore, we do not find any valid reason to keep the matter pending after considering the stay application alone. Therefore we waive the requirement of pre-deposit and take up the appeal itself for finalization. 3. In view of the discussions above, since the issue is no longer Res Integra, the appeal itself will have to be allowed and we do the same with consequential relief if any to the appellants. 9. The aforesaid decision of the Tribunal was challe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
