TMI Blog2022 (9) TMI 1578X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to Cenvat credit. He relies on the judgment of the Hon ble Gujarat High Court in the case of COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD II VERSUS M/S CADILA HEALTH CARE LTD. [ 2013 (1) TMI 304 - GUJARAT HIGH COURT] . The issue of Cenvat credit on insurance services provided to the employees has been dealt with by the Larger Bench of this Tribunal in the case of M/S. RELIANCE INDUSTRIES LTD., VADODRA VERSUS COMMISSIONER CENTRAL EXCISE SERVICE TAX (LTU) , MUMBAI [ 2022 (4) TMI 1357 - CESTAT MUMBAI (LB)] and it has been held that Cenvat credit is available on the service tax paid on such premium. Reliance Industries Ltd dealt with the question whether such premium was paid for insurance of not the employees but those who have opted for vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and has been paying service tax. The appellant also avails Cenvat credit on various input services used for providing output services as per Cenvat Credit Rules, 2004 CCR . During audit conducted in 2006, the appellant was advised by the department that the service tax paid in respect of insurance premium towards medishield policies and personal accident policies would not be eligible for Cenvat credit and the appellant reversed entire amount of Cenvat credit of Rs.4,15,09,544/- and reflected the reversal in its Service tax return for the month of August, 2007 and also intimated the department about the reversal by letter dt.19.10.2007. 3. Later, the appellant felt that they were, indeed, eligible for the Cenvat credit and took the credit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd transportation upto the place of removal. Thus, the definition of input service has wide amplitude and includes any service used in activities relating to business. In their case, they are in the business of providing software solutions and the main resource for providing this service are their employees, who and whose families were provided the mediclaim insurance by the appellant. Therefore, the premium paid for such insurance qualifies as input service. Reliance was placed on the judgment of the Hon ble High Court of Bombay in the case of Coca Cola India Pvt Ltd vs CCE, Pune-III 2009 (242) ELT 168 (Bom.) . ii) The appellant also placed reliance on the following decisions: a) Reliance Industries Ltd vs CCE ST (LTU), Mumbai 2022 (60) GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (30) STR (3) (Guj.) . Para 5.2(a)(ix) reads as follows: (ix) As regards the contention that in any event the service rendered by a commission agent is a service received in relation to the assessee s activity relating to business, it may be noted that the includes part of the definition of input service includes activities relating to the business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security. The words activities relating to business are followed by the words such as. Therefore, the words such as must be given some meaning. In Royal Hatcheries (P) Ltd. v. State of A.P., 1994 Supp (1) SCC 429, the Supreme Court held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Under the circumstances, though the business activities mentioned in the definition are not exhaustive, the service rendered by the commission agents not being analogous to the activities mentioned in the definition, would not fall within the ambit of the expression activities relating to business. Consequently, CENVAT credit would not be admissible in respect of the commission paid to foreign agents. 6. He submits that the appellant had reversed the Cenvat credit during audit and after one and half year had taken the credit back suo moto which is not proper. Further, the insurance is in the nature of a welfare measure for the employees of the appellant and their families and does not squarely fall under the category of activities relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any qualifying words before the word activities, like main activities or essential activities etc. Therefore, it must follow that all and any activity relating to business falls within the definition of input service provided there is a relation between the manufacturer of concentrate and the activity. Therefore, the phrase activities relating to business are words of wide import. 8. Therefore, according to the learned counsel for the appellant, the term activities relating to business has very wide amplitude and as long as expenditure is related to business activities, Cenvat credit cannot be denied. We find that there is no judgment of the jurisdictional High Court of this Bench and the two judgments by two other High Courts interpret th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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