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2014 (5) TMI 377 - AT - Central ExciseCenvat Credit - input services - services provided by the outdoor caterer in the factory premises and on life insurance policies to provide coverage on occupational risk at their unit by paying premiums on the policies in favour of the factory workers. - Held that - respondent is eligible to avail credit on the life insurance policies. In respect of outdoor caterer, the respondent is liable to reverse the credit to the extent of the cost of food, if any, recovered from the employees - Decided partly in favor of assessee.
Issues: Eligibility of input service credit for service tax paid on services provided by an outdoor caterer and life insurance policies.
Eligibility of Input Service Credit for Outdoor Caterer and Life Insurance Policies: The case involved the eligibility of the respondent, engaged in the manufacture of tyres and flaps, to avail input service credit for the service tax paid on services provided by an outdoor caterer in the factory premises and on life insurance policies. The original authority had dropped the demand, leading the Revenue to file an appeal before the Commissioner (Appeals), who rejected it. The Tribunal referred to the case of Millipore India Ltd. Vs. CCE, Bangalore, where credit on service tax paid on medical and insurance policies was allowed, with the decision being upheld by the Hon'ble Karnataka High Court. Concerning the denial of credit for the outdoor caterer service, the Tribunal cited the Hon'ble Bombay High Court case of CCE, Nagpur Vs. Ultratech Cement Ltd., which held that input service credit on outdoor caterer service is eligible as long as the cost of food recovered from the employees/workers is reversed. Consequently, the Tribunal ruled that the respondent was eligible to avail credit on the life insurance policies. However, for the outdoor caterer service, the respondent was directed to reverse the credit to the extent of the cost of food, if any, recovered from the employees. The appeal filed by the Revenue was disposed of accordingly. ---
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