2013 (6) TMI 324 - AT - Central Excise

Admissibility of CENVAT credit on group insurance - period from December 2007 to February 2008 - Held that - This issue is no longer res integra as decided in Commissioner vs. Stanzen Toyotetsu India (P) Ltd.(2011 (4) TMI 201 - KARNATAKA HIGH COURT) wherein held that as the assessee was statutorily required to obtain insurance police covering risk of their employees under the Workmen s Compensation Act and the Employees State Insurance Act, the insurance service received by them from the insurers constituted an input service defined under Rule 2(l) of the CENVAT Credit Rules, 2004. Against revenue.

Summary

The Appellate Tribunal CESTAT Bangalore ruled in favor of the respondent regarding the admissibility of CENVAT credit on group insurance for the period from December 2007 to February 2008. The decision was based on the precedent set by the Hon'ble Karnataka High Court in Commissioner vs. Stanzen Toyotetsu India (P) Ltd. The insurance service received by the assessee was considered an input service under the CENVAT Credit Rules, leading to the dismissal of the department's appeal.