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2019 (12) TMI 122

..... iod of limitation - penalties. Group Medical Insurance - HELD THAT:- This Tribunal in the case of BHARAT FRITZ WERNER LTD. VERSUS COMMISSIONER OF CENTRAL TAX, BANGALORE NORTH WEST COMMISSIONERATE [2019 (6) TMI 67 - CESTAT BANGALORE] has held that cenvat credit is not permissible under the Group Medical Insurance Service. This Tribunal has come to the conclusion that the impugned service falls under the exclusion clause as provided in Clause (c) of Rule 2(l) - appellants are not entitled to cenvat credit of service tax paid on Group Medical Insurance Service. Insurance on assets and business activities - HELD THAT:- The Commissioner (Appeals) has rightly rejected the CENVAT credit to the tune of ₹ 2,27,123/- after examining the various .....

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..... tion 11AC (1)(c) of Central Excise Act, 1944 set aside. The matter is remanded back to the original authority to re-quantify the demand for the normal period with regard to all the impugned services which the appellant is liable to pay - Appeal allowed in part by way of remand. - ST/21165/2018-SM - Final Order No. 21193/2019 - 29-11-2019 - HON'BLE MR. S.S GARG, JUDICIAL MEMBER Mr. Bhanumurthy, Advocate For the Appellant Mr. K. Murali, Supdt. (AR) For the Respondent ORDER Per : S.S GARG The present appeal is directed against the impugned order dated 27/04/2018 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has confirmed the demand of ₹ 13,93.952/- (Rupees Thirteen Lakhs Ninety Three Thousand Nine Hundred an .....

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..... tment entertained the view that the appellant has availed cenvat credit on certain services which do not qualify as input service . It was alleged in the show-cause notice that appellant had availed ineligible credit and the said cenvat credit of ₹ 16,52,154/- (Rupees Sixteen Lakhs Fifty Two Thousand One Hundred and Fifty Four only) was reversed on being pointed out by the audit team and paid interest amount of ₹ 8,75,593/- (Rupees Eight Lakhs Seventy Five Thousand Five Hundred and Ninety Three only). Appellant was issued a show-cause notice as to why an amount of ₹ 18,88,128/- (Rupees Eighteen Lakhs Eighty Eight Thousand One Hundred and Twenty Eight only) should not be recovered as ineligible cenvat credit and amount of & .....

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..... ,90,090/- (Rupees One Lakh Ninety Thousand and Ninety only). Penalty was also reduced from ₹ 10,03,625/- (Rupees Ten Lakhs Three Thousand Six Hundred and Twenty Five only) to ₹ 8,83,200/- (Rupees Eight Lakhs Eighty Three Thousand and Two Hundred only). Demand for interest under Section 75 was also confirmed. Aggrieved by the said order, appellant has filed the present appeal. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order denying the cenvat credit on the impugned services is not sustainable in law as the same has been passed without properly appreciating the definition of input service and the exclusion clause provided in the definition of input service u .....

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..... the company. Therefore, it would be entitled to credit under the Cenvat Credit Rules and would not be hit by the exclusion clause. For this submission, he relied upon the decision in the case of Marvel Vinyls Ltd. Vs. CCE - 2016-TIOL-3071-CESTAT-DEL. With regard to Food coupons/sodexo coupons, learned counsel submitted that in the case of sodexo vouchers, the services are provided by the restaurants, stores and shops etc and merely the service charges are paid by the employer and as such no services are provided by the employer himself. He further submitted that the food coupons/sodexo coupons are not included in the exclusion clause and therefore cenvat credit cannot be denied. Further with regard to bus pass, the learned counsel submitte .....

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..... nce is concerned, this Tribunal in the case of Bharat Fritz Werner Ltd. vide Final Order No. 20450/2019 has held that cenvat credit is not permissible under the Group Medical Insurance Service. This Tribunal has relied upon the decision of the Larger Bench in the case of Wipro Ltd. and then come to the conclusion that the impugned service falls under the exclusion clause as provided in Clause (c) of Rule 2(l). Therefore, by following the ratio of the said decision in the case of Bharat Fritz Werner Ltd., I hold that the appellants are not entitled to cenvat credit of service tax paid on Group Medical Insurance Service. The decision of the Hon ble High Court of Madras in the case of M/s. Ganesan Builders Ltd. has been distinguished by this T .....

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