TMI Blog2022 (12) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... end to the controversy over eligibility of credit in such circumstances. Decided in favor fo assessee. - EXCISE APPEAL NO: 477 OF 2012 - FINAL ORDER NO: A/86168/2022 - Dated:- 9-12-2022 - MR C J MATHEW, MEMBER (TECHNICAL) AND MR AJAY SHARMA, MEMBER (JUDICIAL) Shri Ramnath Prabhu, Advocate for the appellant Ms Anuradha S Parab, Assistant Commissioner (AR) for the respondent ORDER Appeal of M/s Reliance Industries Ltd challenges order-in-original no. 14/ COMMR(KAP) /LTU/MUM/Cx/ 2011 dated 29 th December 2011 of Commissioner of Central Excise Service Tax, LTU, Mumbai which, having disallowed CENVAT credit of Rs.1,33,37,699/-, ordered recovery thereof under rule 14 of CENVAT Credit Rules, 2004, along with applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II v. Millipore India Pvt Ltd [2012 (26) STR 514 (Kar.)],that inclusion as cost in CAS-4 suffices for eligibility, it was considered appropriate to refer the matter to the Hon ble President for constitution of a Larger Bench for determining i. Interpretation of rule 2 (l) of the 2004 Rules for the period prior to the amendment made in the year 2011. ii. Applicability of Cost Accounting Standard-46 for determination of eligibility to CENVAT credit in cases other than where the goods are captively consumed and valued in terms of rule 4 of Central Excise Rules, 2000. 3. The Larger Bench of the Tribunal, considering the facts of the case and the reference made to it, concluded that 52. The interpretation of rule 2 (l) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance premium paid by the appellant to the insurance company for availing medi-claim of employees who had opted for the VSS announced by the appellant as the service that was rendered would amount to input service in terms of rule 2(l) of the 2004 Rules, as it stood at the relevant time; it being in relation to activities relating to business. 4. Furthermore, on the reference on applicability of CAS-4 the Larger Bench noted that 67. The above observations were made after referring to paragraph 5 of the judgment of the Karnataka High Court in Millipore India, wherein paragraphs 4.1 and 5.2 of CAS-4 were extracted. It is important to note that paragraph 5.2 is not the only provision in CAS-4, which deals with costs relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of VRS/retirement/separation schemes, are an integral part of the employee cost . 5. Thereafter, the Larger Bench directed that the matter be placed before the Division Bench for deciding the appeal on merits. 6. As seen from the records, the impugned order has held the service on which CENVAT credit had been availed was ineligible for having been incurred on employees who were to retire and consequently having no nexus with manufacturing activity that is essential for taking credit under rule 3 of CENVAT Credit Rules, 2004. The decision of the Larger bench has categorically spelt an end to the controversy over eligibility of credit in such circumstances. 7. Learned Authorised Representative submitted that the essence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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