TMI Blog2019 (5) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... ng output service - the credit availed in respect of the services prior to 1.4.2011 would be eligible. Period post 1.4.2011 - HELD THAT:- The definition of input services was amended so as to include certain exclusion clauses. As per clause (B) for definition of input services, the services provided way of renting of motor vehicle would be eligible only if the vehicle is capital goods for the service provider - In the present case, there is no evidence adduced by the appellant that the renting of motor vehicle was capital goods for the service provider - the credit availed on rent-a-cab service is not eligible. Vehicle insurance - maintenance and repair of motor vehicle - HELD THAT:- Clause (BA) of the definition of input services exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 15-5-2019 - Ms. Sulekha Beevi C.S., Member (Judicial) Shri V.S. Manoj, Advocate for the Appellant Shri K. Veerabhadra Reddy, ADC (AR) for the Respondent ORDER Brief facts are that the appellants are registered service providers for air travel agency service and Business Auxiliary Service. They were issued Show Cause Notice proposing to recover wrongly availed credit of service tax paid to an extent of ₹ 1,28,610/- on input services such as rent-a-cab service, vehicle insurance, group insurance medi-claim service, staff welfare and travel expenses. After due process of law, the original authority confirmed the demand along with interest and imposed penalty. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1.4.2011. He submitted that the credit availed on vehicle insurance, maintenance of vehicles, rent-a-cab services are not eligible for credit. So also it is submitted by him that the health insurance policy, staff welfare and travel expenses are all used for personal consumption and therefore not eligible. 4. Heard both sides. 5. As pointed out by ld. counsel for appellant, the period of dispute is prior to 1.4.2011 as well as after. The definition of input service prior to 1.4.2011 had a wide ambit and it included the words activities relating to business . There are several decisions of the High Courts as well as Tribunal which have consistently held that almost all the services narrated above are eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for personal use or personal consumption of an employee is not eligible for credit. In the present case, the insurance policies are not taken under any statutory mandate. It is an incentive given to the employees. The primary and most direct beneficiary of such insurance policy is the employee and not the company or the employer whereas in the case of workmen s compensation policy or any other policy which is required to be taken under statutory mandate, the primary beneficiary is the company or the employer and not the employee. This is because in case of untoward accident to the workmen, the company will have to utilize its fund for making the compensation to the injured workmen. To indemnify in case of accident, such statutory mandated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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