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2019 (12) TMI 122

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..... ed 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 invoices relating to CENVAT credit and there are no infirmity in his findings and therefore appellant is not entitled to cenvat credit on insurance on assets and business activities to the tune of ₹ 2,27,123/- Credit not allowed. Rent-a-Cab and bus pass - HELD THAT:- This falls in the definition of ‘input service’ as it is directly related to the productivity of the employees working with the appellant and thi .....

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..... ant 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 and Fifty Two only) being ineligible cenvat credit availed and utilized under Section 73 of the Finance Act. The Commissioner (Appeals) has dropped the demand of ₹ 1,90,090/- (Rupees One Lakh Ninety Thousand and Ninety only). The interest demand is also confirmed and penalty is reduced from ₹ 10,03,625/- (Rupees Ten Lakh Three Thousand Six Hundred and Twenty Five only) to ₹ 8,83,200/- (Rupees Eight Lakh E .....

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..... 377; 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 ₹ 16,52,154/- (Rupees Sixteen Lakhs Fifty Two Thousand One Hundred and Fifty Four only) being cenvat credit reversed should not be appropriated, interest amount of ₹ 10,13,681/- (Rupees Ten Lakhs Thirteen Thousand Six Hundred and Eighty One only) should not be demanded and recovered and amount of ₹ 8,75,593/- (Rupees Eight Lakhs Seventy Five Thousand Five Hundred and Ninety Three only) being interest pai .....

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..... used 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 under Rule 2(l) (C). He further submitted that Clause (C) of the exclusion Clause in the definition of input service will be applicable only where the services listed therein are used primarily for personal use or consumption of any employee whereas in the present case the medical insurance is taken on the life of the Directors and foreign employees. He further submitted that Group Medical Insurance falls in the definitio .....

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..... c 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 submitted that bus pass is taken for the employees to travel on the business connected issues. Therefore, the same cannot be denied and is not excluded by the exclusion clause. He also submitted that major portion of the demand is barred by limitation as there is no intention on the part of the appellant to evade payment of taxes. 5. On the other hand, the learned AR defended the impugned order and submitted that the cenvat cred .....

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..... 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 Tribunal in the case of Bharat Fritz Werner Ltd. As far as cenvat credit on assets and business activities is concerned, I find that the Commissioner (Appeals) has rightly rejected the cenvat credit to the tune of ₹ 2,27,123/- (Rupees Two Lakhs Twenty Seven Thousand One Hundred and Twenty Three only) after examining the various invoices relating to cenvat credit and I do not find any infirmity in his findings and th .....

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