2017 (8) TMI 1367 - AT - Service Tax

CENVAT credit - insurance service - Held that - The insurance coverage has not only covered life of the employees of appellant but also their dependents - Under Factories Act, workmen compensation is provided to the factory workers engaged in the manufacture covering them under insurance. Such a welfare measure having integral connection with the business of appellant, there should not be denial of CENVAT credit of the Service Tax paid to avail insurance service - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Mumbai allowed the appeal of the appellant regarding the denial of CENVAT credit for Service Tax paid on insurance services. The Tribunal emphasized the integral connection of insurance coverage for employees with the business of the appellant, citing the provision of workmen compensation under the Factories Act. The Tribunal ruled in favor of the appellant, stating that there should not be a denial of CENVAT credit in such cases.