TMI Blog2021 (4) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... ty scheme for employees is a service for the welfare of the employees at large services stated in clause (c) in the input service definition are held to be excluded only when such services are used primarily for personal use or consumed by any employee Hyderabad Tribunal has denied the insurance service of all the employees if taken by the manufacturer to fall under exclusion clause of the input definition - Hon ble Madras High Court also in the case of M/S. GANESAN BUILDERS LTD. VERSUS THE COMMISSIONER OF SERVICE TAX [ 2018 (10) TMI 269 - MADRAS HIGH COURT] has held that insurance also was insured specific and not employee specific. It cannot be for personal use or for consumption of an employee manufacturer held entitled to take credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant s record AGMP Audit party observed that the appellant has availed incorrect Cenvat credit of service tax on ineligible services like Customs House Agent Service, Rent a Cab Operator Service, Banking and Financial Services, Insurance Services, Courier Services, Travel Agent Services, Subscription of Club Membership etc. Availment of Cenvat credit on the services which was not found in order as these were not specified categories of input services. Resultantly vide show cause notice No. 216 dated 23 April 2018 credit of ₹ 27,98,462/- was proposed to be disallowed to the appellant for availment of the above-mentioned services for not being the input services. Interest on appropriate rate and proportionate penalty was also pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not mentioned either in the main part or inclusive part of the definition the denial of Cenvat credit thereupon is not proper and legal with respect to the exclusion clause of the definition. It is submitted by the appellant that the services as enumerated in the inclusion clause of definition are excluded from the ambit of input service only when extended to employees on vacation, such as, leave or home travel concession and used primarily for personal used on consumption of any employee. It is submitted that neither the Health Insurance Scheme nor the Membership of Club Fee are for the personal use nor for consumption of an employee. Hence, Commissioner (Appeals) has wrongly disallowed the Cenvat credit of both the said services. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise requires,- (a) Customs Tariff Act means the Customs Tariff Act, 1975 (51 of 1975); (b) electronic credit ledger means the electronic credit ledger referred to in sub-section (46) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017); (c) Excise Act means the Central Excise Act, 1944 (1 of 1944); (d) exempted goods means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to Nil rate of duty; (e) final products means excisable goods manufactured or produced from input; (f) first stage dealer means a dealer, who purchases the goods directly from,- (i) the manufacturer under the cover of an invoice issued in te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other place or premises from where the excisable goods are to be sold after their clearance from the factory, from where such goods are removed; (l) second stage dealer means a dealer who purchases the goods from a first stage dealer; (2) The words and expressions used in these rules and not defined but defined in the Excise Act shall have the meanings respectively assigned to them in the Excise Act. A perusal of this definition makes it clear that any service which has been used directly or indirectly in relation to the manufacture of final product and the clearance thereof upto the place of removal, the credit is allowable. In inclusive part of the definition also though there are no specific services mentioned, but i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to take credit of service tax paid. Similarly, with respect to the Club Membership Services, Tribunal Delhi in BCH Electric Ltd. versus Commissioner of Central Excise, Delhi IV 2013 (31) S.T.R. 68 (Tri. Del.) has held that Membership of an association of manufacturers is covered by the definition of input service under Rule 2 (l) of Cenvat Credit Rules, 2004 as related business activity providing information on technology. 8. Above all, there is no evidence produced by the Department to prove that even these two services were for personal use of the appellant. In absence thereof, I do not find any logic in the findings of Commissioner (Appeals) while confirming the recovery of Cenvat credit availed by the appellant on these tw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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