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TMI Blog2019 (3) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in both appeals is identical, both the appeals have been taken up together for discussion and disposal. Details of both the appeals are given below:- Item E/21858/2018 E/21917/2018 Period of Dispute 01/04/2013 to 31/03/2015 01/04/2016 to 31/03/2017 Demand of CENVAT Credit along with interest Rs.4,14,133/- Rs.2,43,573/- Penalty Rs.41,100/- Rs.24,357/- For the sake of convenience, the facts of appeal No.E/21858/2018 are taken. 2. The appellant is manufacturer of Viscose Staple Fibre under CETH 55, Sodium Sulphate under CETH 28, Sulphuric Acid under CETH 28, Carbond Di-Sulphide under CETH 28, Wood Pulp under CETH 47. The appellants were issued three show-cause notices dt. 18/03/2014, 26/11/2014 and 20/07/2015. After ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atural justice on the issue of mediclaim insurance scheme. On remand, the Commissioner(Appeals) after following the directions of the Tribunal has disallowed the CENVAT credit of Rs. 4,14,133/- under Rule 14 of CCR along with applicable interest and also imposed penalty of Rs. 41,100/- under Rule 15(1) and in the another appeal demanded CENVAT credit of Rs. 2,43,573/- and imposed penalty of Rs. 24,357/-. 3. Heard both sides and perused records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that the appellants have paid the premium for group mediclaim to M/s. New India Assurance Company Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not excluded from the definition of input service under Rule 2(l) from 01/04/2011. Learned counsel also referred to the CBEC circular dt. 27/07/2012 clarifying the issue of leviability on staff benefits and employment related transactions and eligibility of such services for CENVAT credit. He also referred to the definition of input service as contained in Rule 2(l) of CCR. He further submitted that even after the amendment in the definition of input service w.e.f. 01/04/2011, mediclaim insurance policies taken for the employees are not excluded for the purpose of CENVAT credit. In support of this submission, he relied upon the decision of the Hon'ble High Court of Madras in the case of Ganesan Builders Ltd. Vs. CST, Chennai [2018-TIOL- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnai-III [2018(15) GSTL 75 (Tri. Chennai)] ii. John Deere India Pvt. Ltd. Vs. CCE, Pune-II [2016(41) STR 900 (Tri. Mumbai)] iii. BPL Telecom Ltd. Vs. CCE,C&ST, Calicut [2016(46) STR 775 (Tri. Bang.)] iv. Semco Electric Pvt. Ltd. Vs. CCE, Pune-I [2012(276) ELT 96 (Tri. Mum.)] 6. After considering the submissions of both sides and perusal of the material on record, I find that in the present case, the appellant has taken one consolidated mediclaim policy for its employees and their family members and have paid the premium for group mediclaim to M/s. New India Assurance Company Ltd. Further I find that option is given to the employees to include insurance cover for their family members on payment of some premium by them which will be deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relevant statutory provisions, what is seen is that the Service Tax paid on Group Health Insurance for the family of the employees can in no way be held to be relatable to the business of manufacture of an assessee. Therefore I am unable to consider the observations in the GTC Industries Ltd. However I find that decision cited by the learned AR is directly on the subject and covers the issue in favour of the Revenue. Therefore I do not find any merit as regards the claim of Service Tax credit in respect of insurance cost attributable to the family members. Further in the case of Semco Electric Pvt. Ltd., the Tribunal has held as under:- 4..... ... ... .... (4) Insurance Services : The input service credit on insurance is denied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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