2017 (5) TMI 1557 - AT - Central Excise

CENVAT credit - input services - Group Health Insurance for the family members of the employees - Held that - This group insurance is mandatory under the statute for the employees and their family. The assessee has no any option but to give this facility to employees which is mandatory - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Admissibility of CENVAT Credit for Service Tax paid on Group Health Insurance for family members of employees.

Analysis:
The issue at hand in this case revolves around the admissibility of CENVAT Credit for Service Tax paid on Group Health Insurance for the family members of employees. The appellant's counsel, Ms. Anjali Hirawat, argued that similar issues have been addressed in previous judgments, citing cases such as Xiotech India Pvt. Ltd., Biesee Manufacturing Co. Ltd., Dr. Reddy's Laboratories Ltd., Coca Cola India Pvt. Ltd., and GTC Industries Ltd. On the other hand, Shri Sanjay Hasija, representing the Revenue, reiterated the findings of the impugned order.

Upon careful consideration of the arguments presented by both parties, the Member (Judicial) Shri Ramesh Nair delved into the crux of the matter. It was noted that the group health insurance in question is mandatory under the statute for the employees and their family members. The assessee is obligated to provide this facility, and the expenses incurred for this purpose are considered part of the overall manufacturing activity. The Member observed that the issue in question has already been settled in previous judgments cited by the appellant's counsel, rendering it no longer res integra.

Relying on the decisions referenced by the appellant's counsel, the Member set aside the impugned order and allowed the appeal in favor of the appellant. The judgment was pronounced in court on 30.05.2017 by Shri Ramesh Nair.