TMI Blog2022 (2) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability which may arise on account of any dispute arises for providing the services provided by the appellant. The said insurance helps and protect professional advice and service provided by the officials/individuals of the appellant from bearing the full cost of damages awarded in a civil suit to the service recipient. The appellant undertakes to indemnify their clients in respect of certain losses against future claim by their clients against the appellant. In that circumstance, the said service i.e. Professional Indemnity Insurance do qualify as an input service in terms of Rue 2(l) of Cenvat Credit Rules, 2004. Medical insurance policy - HELD THAT:- From the facts of the case, it is coming out that the group insurance has been taken by the appellant not only for their employees but for their family members also. In that circumstances, the service tax paid on premium for group medical insurance paid toward the insurance of family members of the employees of the appellant, therefore, the appellant is not entitled to take credit on the service tax paid on the part of group medical insurance paid towards the family members of the employees of the appellant - it is not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s. Woodcraft for maintenance, repairs and renovation ect, of the offices of the appellant. Credit of non levy amount against bills of M/s. Perfect Business Centre and M/s Ind Global Corporate Finance Ltd. For Renting of Immovable Service for the period April-May, 2007 - HELD THAT:- Levy of service tax on renting of immovable property service came into force with effect from 1.6.2007 and the service tax on which cenvat credit availed is pertained to the period prior to that, as no service tax was payable by the service provider and there was no levy of service tax prior to 1.6.2007, the said service prior to 01.06.2007, cannot be held as input service to avail credit by the appellant. The appellant was not required to pay service tax for the April, 2007 and May, 2007 as there was no levy of service tax during the said period. In that circumstance, on merits, the appellant is not entitled to take credit of service tax paid on renting of immovable property for the period for the April, 2007 and May, 2007 - it is evident that the cenvet credit has been availed in the month of March, 2008 whereas the show cause notice has been issued on 18.04.2013 which beyond the extended pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of immovable property availed for the period April and May, 2007 during March, 2008 against bills of M/s. Perfect Business Centre Services Pvt. Ltd. and M/s. Ind Global Corporate Finance Pvt. Ltd., as such services were not taxable prior to 01.06.2007. (e) Bills of M/s. Perfect Business Centre Services Pvt. Ltd. pertaining to reimbursement of cost of travel coupons issued in favour of Appellant s employees in the month of February, 2010 and against improper documents for inadmissible services during 2007-08 to 2011-12. (f) Bills of M/s. Woodcraft India Pvt. Ltd. were not proper documents as the same were not issued in favour of the appellants. 3. Periodical show cause notices were issued to the appellant and the matter was adjudicated by way of the impugned order and the credit was denied on above services during the period 2007-08 to 2014-15. Against the said order, the appellant is before us. 4. The Ld. Counsel appearing on behalf of the appellant submits that the appellant is a management and consultancy service provider wherein it gives advice to clients on financial and other taxation matters. 5 With regard to availment of cenvet credit on Professional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Kar.) (b) Prism Cement v. CCE, Bhopal-2019 (369) ELT 1205 (Tri. - Del.) (c) PTC Software India Pvt. Ltd. v.CCE-2014 (35) STR 632 (Tri.) (d) KPMG v. CCE. New Delhi-2014 (33) STR 96 (Tri. - Del.). 7. With regard to the availability of Cenvat credit against Bills of M/s. Wizcraft for EOY awards expenses and budget day programme expense, it his submission that the Budget Day function is organized specifically to discuss the annual Union Budget changes with employees of the appellant across country to provide them knowledge which helps in providing services (tax and regulatory consultancy) to the clients. Further, an EOY award is an event where top industry leaders, professionals and entrepreneurs who have excelled in their respective fields are appreciated and recognized for their achievements. The event is attended by senior management personnel of the appellant which gives them an opportunity to develop new business relationships further leveraged in future to generate business. Therefore, the services of Wizcraft are used for events for organising the abovesaid events which are linked to business activities. 7.1. To support his contention, he relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed premises of the appellant and the civil work was done at one of the registered premises of the appellant involving maintenance, repairs and renovation of the office premises from where the appellant provides consultancy services. The service provider has given a declaration that services have been provided to the registered address of the appellant and that the service tax has been paid by the appellant to the service provider. Therefore, the appellant is entitled to take Cenvet credit as services used in or in relation to setting up, modernisation, renovation or repairs of a factory, premises of provider of output services or an office relating to such factory or premise. 9.1. To support his contention, he relied on the decision in the following cases: - (i) Coca Cola India Pvt. Ltd. v.CCE-2009 (242) ELT 168 (Bom.) (ii) CCE v. Bellsonica Auto Components India Pvt.Ltd.-2015 (40) STR 41 (P H) (iii) Carrier Air-conditioning Refrigeration Limited v.CCE-2016 (41) STR 824 (Tri.) (iv) CCE, Goa v. Essel Propack-2015 (39) STR 363 (Bom.) 10. Cenvet credit on non-levy amount against bills of M/s Perfect Business Centre Services Pvt. Ltd. and M/s Ind Global Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... althcare Ltd.-2009 (30) STR 0003 wherein it has specifically been held that the words such as used in the definition should bear some similarity to the illustrative activities. Further, these services can be, not in all cases, but in case of any eventuality used only when the output service is complete and delivered and being post delivered service, the credit cannot be said to be covered by the definition of input service hence can otherwise also fall within clause (i) to the definition. 14. Credit is admissible on Group Health Insurance Policy of employees REBUTTAL: The Hon ble Tribunal in case of John Deere India Pvt. Ltd. v. CCE, Pune-III, 2016 (41) STR 990 (Tri.-Mum.) had specifically held that the portion of the service tax paid on premium pertaining to the family members shall not be admissible. The adjudicating authority had noted that in the impugned case the subject policy covered not only the employees but also their children, spouse and dependent parents. The appellant have pointed out that the insurance involved in the said case law was life insurance , whereas in the subject case is mediclaim insurance . The ratio of the case law relied upon by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifically to examine the admissibility of the input credit of service tax paid on premium of Group Insurance Policy taken out by an assessee to meet with the requirement of Workmen Compensation Act, 1923 noted that the admissibility would depend on the person to who the benefit of the policy accrued to. If the benefit accrued to the assessee as it did in the said case as they were obliged by law to pay compensation to their workmen in case of any mishap, credit would be admissible, but if it accrued to the employee, even if the premium was paid by the assessee, the credit would not be admissible. This Tribunal has observed that the said policy unlike health insurance policy taken for the benefit of employees. Further, it was noted that the Hon ble Madras High Court in the case of Ganesan Builders had denied Cenvat credit on the input service which was for personal consumption of the employees and not to cover the potential liability of the assessee. In the subject case, the benefit accrues not only to the employee but also to their family members, so even though the premium is paid by the appellant, credit of the same would not be admissible. Accordingly, decisions relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a manufacturer or producer of final products or a provider of output service shall be allowed to take credit of the service tax leviable under section 66 of the Finance Act. The Cenvat scheme did not extend service tax credit on non-taxable services. The subject services cannot be considered as input services as the same were not taxable at the time of their rendering. Just as service tax for the period could not have been recovered in the absence of the legal fiat to collect the same, the service provider was under no obligation to pay the tax in question. It would constitute tax collected without authority of law and would accrue to the government on the said account only. The case law of MDS Switchgear is not relevant to the subject case as in the said case the duty payable had been assessed by the jurisdictional departmental officers, the issue pertained to the era when the classification as well as prices were approved by the department. 17. Credit of service tax paid on travel coupons provided by ROIP service provider to Appellant s employees REBUTTAL: From the invoice no. PBSCPL/TE-01/09-10 dated 19.02.2010, it is nowhere clear that the same is for official tour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and classification of the output services. The irregularities were brought out only while conducting Special Audit under Section 14A of the Central Excise Act, 1944 as made applicable to Finance Act, 1994 and evidencing intention to avail inadmissible Cenvat Credit. Hence, extended period is rightly upheld. Reliance is placed on judgement in the case of Lakhan Singh Co. vs. CCE-2016 (46)STR 297 (T) and CCE vs. Mehta Co.-2011 (264) ELT 481 (SC). 20. Heard the parties at length. On going through the arguments advanced during the hearing, written submissions made by both sides and records placed before us, we find that the appellant is in the business of providing Management and Business Consultancy Service and availed above services and took cenvet credit on the said services. It is also a fact on record that a special audit took place for the period of 2007-08 to 2011-12 in January, 2013 wherein the audit raised objections for availment of cenvet credit on the above mentioned services. Consequent to the same, periodical show cause notices were issued to the appellant, which was adjudicated by way of the impugned order wherein the cenvet credit has been denied on the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transpiration of inputs or capital goods and outward transportation upto the place of removal but excludes services, - (A) specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of Section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for- (a) construction of a building or a civil structure or pa part thereof; or (b) laying of founding or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor vehicle except when used for the provision of taxable series for which the credit on motor vehicle is available as capital goods; or (C) such as those p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is entitled to credit on Professional Indemnity Insurance Service, therefore, following our own decision in appellant s own case, we allow credit availed by the appellant on professional indemnity insurance service. Medical insurance policy - 23. For the cenvet credit of service tax against the group medical insurance for the period 2007-08 up to 31.3.2011, the appellant has availed credit of service tax paid on group medical insurance policy, we find that the appellant is entitled to take credit on any of the service directly or indirectly having nexus with their business activity. The said group insurance of their employees is not having any direct nexus with the output service provided by the appellant but the group medical insurance for employees only is covered by the said definition on analysing the case laws relied upon by both the sides. From the facts of the case, it is coming out that the group insurance has been taken by the appellant not only for their employees but for their family members also. In that circumstances, the service tax paid on premium for group medical insurance paid toward the insurance of family members of the employees of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and also on other support service. We find that there is bifurcation of the services availed by the appellant. The appellant has failed to provide data and information whether the said travel coupons has been used for business purpose or not? Failing which inference is drawn that the said coupons were used by the employees of the appellant for their personal use. Therefore, the service tax paid on travel coupons do not qualify as input service. Accordingly, on that service the appellant is not entitled to take credit and the same is denied. 26. Credit in respect of improper documents- We take note of the fact that the invoices raised by M/s Woodcraft were addressed to the one of the registered premises of the appellant and the civil work was done at one of the registered premises of the appellant involving maintenance, repairs and renovation of the office premises from where the appellant provides consultancy services. The allegation is that the invoices raised on those registered premises which are not in the name of the appellant, therefore, the appellant is not entitled to avail credit. We find that the appellant is having various offices at various other locations, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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