2018 (10) TMI 826 - AT - Central Excise

CENVAT credit - input service - insurance premium paid towards Employees Compensation Insurance Policy - Held that - The Chandigarh Bench of the Tribunal has in the case of Commissioner of Central Excise, Delhi-III Vs. Suzuki Motorcycle India Pvt. Ltd. 2016 (9) TMI 576 - CESTAT CHANDIGARH , where it was held that It is found that insurance service has been availed by the assessee of medical insurance of their employees which they are statutory required to availed in the light of employee State Insurance Act which provides that the assessee is compulsory required to take insurance of the employee, therefore, the said service is integrally part of the manufacturing activity and they are entitled to avail the cenvat credit on the said services - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Challenge to Order-in-Appeal regarding input service tax on insurance premium for Employees Compensation Insurance Policy.

Analysis:
1. The appeal challenges the Order-in-Appeal No. 64/2017 dated 09.08.2017, where the Commissioner (Appeals) reversed the Order-in-Original, holding the availment of input service tax on insurance premium as incorrect.
2. The period of dispute is April 2012 to March 2016, post-01.04.2011. The issue revolves around whether the assessee is entitled to Cenvat credit on insurance services. The Tribunal cited precedents like Hindustan Coca Cola Beverages Pvt. Ltd. and NTF India Pvt. Ltd. to support the assessee's claim.
3. The Tribunal emphasized that insurance services for employees' welfare under the Factories Act are permissible for Cenvat credit. The judgment in Fiem Industries Ltd. v. Commissioner of Central Excise, Chennai-III supported the assessee's claim for Cenvat credit on insurance services for employees in hazardous situations.
4. Based on the legal precedents and the nature of insurance services availed by the assessee, the Tribunal found the denial of Cenvat credit unsustainable. Consequently, the impugned Order was set aside, and the appeal was allowed with any consequential benefits.

This detailed analysis of the judgment highlights the legal arguments, precedents cited, and the final decision of the Appellate Tribunal CESTAT CHENNAI regarding the challenge to the Order-in-Appeal concerning input service tax on insurance premium for Employees Compensation Insurance Policy.