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2014 (4) TMI 230 - AT - Central ExciseAvailment of CENVAT CRedit - Service Tax paid by the insurance company on the group insurance taken by the respondent herein for his employees - Held that - first appellate authority, in this case, has relied upon the judgment of Division Bench decision of the Tribunal in the case of HEG Limited 2009 (6) TMI 244 - CESTAT, NEW DELHI and allowed the benefit of CENVAT Credit and also has relied upon the decision of Hon ble High Court of Mumbai in the case of Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT , to hold that the respondent therein are eligible to avail CENVAT Credit of Service Tax paid on the services rendered by insurance company on the group insurance taken by him for his employees - No reason to interfere with decision - Decided against Revenue.
Issues involved:
1. CENVAT Credit availed by the appellant on Service Tax paid by the insurance company for group insurance taken by the respondent's employees. Analysis: The judgment addresses the issue of CENVAT Credit availed by the appellant on the Service Tax paid by the insurance company for group insurance taken by the respondent's employees. The first appellate authority allowed the benefit of CENVAT Credit based on the Division Bench decision of the Tribunal in the case of HEG Limited and the decision of the Hon'ble High Court of Mumbai in the case of Ultratech Cement Ltd. The appellant, the Revenue, challenged this decision. However, the presiding Member, M.V. Ravindran, found no reason to interfere with the first appellate authority's decision, as it was based on well-reasoned orders and judicial pronouncements. The Member also cited the judgment of the Hon'ble High Court of Karnataka in the case of Micro Labs Ltd, where a similar issue was settled in favor of the assessee. Consequently, the appeal filed by the Revenue was deemed to be devoid of merits, and the impugned order was upheld as correct and legal, without any infirmity. Therefore, the appeal filed by the Revenue was rejected. This judgment highlights the importance of judicial precedents and decisions in determining the eligibility of CENVAT Credit on Service Tax paid by an insurance company for group insurance. It underscores the significance of consistency in legal interpretations and the need to adhere to established legal principles. The judgment also emphasizes the role of appellate authorities in applying legal precedents to specific cases and upholding decisions based on sound reasoning and legal validity. Furthermore, the reference to judgments from different High Courts and Tribunals demonstrates the reliance on established legal authorities to resolve similar issues effectively. Overall, the judgment underscores the significance of legal clarity and consistency in interpreting and applying tax laws related to CENVAT Credit.
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