TMI Blog2023 (1) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... - EXCISE APPEAL NO: 1022 OF 2012 - A/86239/2022 - Dated:- 22-12-2022 - HON BLE MR C J MATHEW, MEMBER (TECHNICAL) AND HON BLE MR AJAY SHARMA, MEMBER (JUDICIAL) Shri Kartik Dedhia with Ms Hema Doshi and Ms Shilpa Balani, Advocates for the appellant Shri Sydney D Silva, Additional Commissioner (AR) for the respondent ORDER PER: C J MATHEW The appellant, M/s Reliance Industries Ltd, manufacturer of excisable goods at their facility in Vadodara, had been issued with show cause notice dated 13th October 2010 for denying CENVAT credit which ultimately was limited to ₹ 13,31,172/- held as ineligible for being premium paid for group insurance to cover employees opting for voluntary separation scheme (VSS) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Learned Counsel for the appellant has substance. As noticed above, VSS was for the existing employees and was not an option to be exercised by those employees who had retired. In fact, compensation/ benefits under the VSS were to extend only up to the notional age of superannuation of the employees who had opted for VSS. It was in order to avoid continued losses and to bring about a situation that would enable the appellant to run its business and manufacturing activities that the Scheme was floated. Input service, as defined in Rule 2(l) of the 2004 Rules, means any service used by the manufacturer directly or indirectly, in or in relation to the manufacture of final products and includes services used in relation to activities relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. In the light of these two judgments and 3. orders, the questions proposed in the present appeal cannot be treated as substantial questions of law. The appeal is therefore disposed of in terms of the aforesaid two judgments. 53. In view of the aforesaid discussion, it has to be held that credit can be availed on the amount of insurance premium paid by the appellant to the insurance company for availing mediclaim 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. xxxxx 60. It needs to be remembered that eligibility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since duty was actually being paid on the finished goods i.e. cement, not on the assessable value or the cost of production, but on tonnage basis. This contention of the Department was rejected by the High Court in Ultratech Cement and the relevant observations are as follows : 24. In the present case, the dispute is, whether the assessee is entitled to take credit of service tax reimbursed by the assessee to the outdoor caterer (whose services were engaged for providing canteen facilities to the employees of the assessee) and utilize the said credit in discharging the excise duty/CENVAT payable on the cement manufactured by the assessee? 25. In the present case, the CESTAT following the Larger Bench decision of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not cite any judgment taking a view contrary to the one taken by the Karnataka High Court in Millipore India. 63. The Bombay High Court in Ultratech Cement and Coca Cola India are also in line with the view taken by the Karnataka High Court in Millipore India. 64. The judgment of any High Court (not just the jurisdictional High Court) would be binding, unless there is a contrary view taken by a different High Court. In the present case, the judgments of the jurisdictional High Court are consistent with the decision of the Karnataka High Court in Millipore India. This being the position, there is no basis for doubting the correctness of the view expressed by the Tribunal in Reliance Industries in the two matters concerning th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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