2017 (8) TMI 1372 - AT - Service Tax

CENVAT credit - insurance coverage taken by the appellant for their employees including Group Personal Accident Life Insurance and Group Mediclaim as also the vehicle insurance. Held that - the issue stand decided in the case of FIEM Industries Ltd. Versus CCE Chennai III 2016 (3) TMI 1165 - CESTAT CHENNAI where it was held that Exclusion of insurance service in certain events has been incorporated into the law w.e.f. 01.04.2011. That is only in respect of the insurance coverage given to employees during journey availing leave travel concession. But that had not taken away welfare of workers under the Factories Act from its fold if insurance service is availed to overcome difficulties under Workmen Compensation Act in case of hazard - credit allowed - appeal allowed - decided in favor of appellant.

Summary

The dispute was about the availability of Cenvat credit for insurance coverage for employees and vehicles. The Revenue denied it citing an amended provision, but the Tribunal decided in favor of the appellant based on precedent cases. The services were deemed cenvatable even after 01.04.2011. The impugned order was set aside, and the appeal was allowed with consequential relief.