2015 (2) TMI 236 - AT - Service Tax

Disallowance of Cenvat credit of service tax paid on insurance premium - Insurance of employee - Held that - It is stated by appellant that insurance is essential to insure the workers in the factory and becomes an input service - insurance for worker has an integral connection with the manufacture - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI allowed the appeal regarding the disallowance of Cenvat credit for service tax paid on insurance premium, stating that insurance for workers in the factory is an input service essential for manufacturing. The stay petition was also allowed.