2020 (3) TMI 74 - AT - Central Excise

CENVAT credit - input services - Group Medical Insurance Policy for employees and their dependants - HELD THAT - The issue has been laid to rest by the Hon ble High Court of Judicature at Madras in the case of M/S. GANESAN BUILDERS LTD. VERSUS THE COMMISSIONER OF SERVICE TAX 2018 (10) TMI 269 - MADRAS HIGH COURT where the credit was allowed. The denial of CENVAT Credit on Group Medical Insurance Policy on the dependants of employees is bad - Appeal allowed - decided in favor of appellant.

Summary

Issues involved: Appeal against Order-in-Original regarding availment of CENVAT Credit on various services.

Issue 1: Show Cause Notice and Adjudication
The Show Cause Notice was issued against the appellant for availing CENVAT Credit on services deemed ineligible, such as Group Medical Insurance, Manpower Supply, Property Consultant, Food bills, Club Memberships, etc. The appellant's reply included reliance on legal decisions without providing factual details. The Adjudicating Authority confirmed the demand proposed in the Show Cause Notice in the Order-in-Original dated 26.09.2012.

Issue 2: Appeal Hearing
During the appeal hearing, the appellant's advocate cited the decision of the Hon'ble High Court of Judicature at Madras and a Chennai Tribunal case, establishing that CENVAT Credit on Group Medical Insurance for employees is permissible. The Revenue's representative supported the Adjudicating Authority's findings, emphasizing the lack of explanation from the appellant regarding the services' relevance to manufacturing.

Issue 3: Tribunal Decision
The Tribunal considered the legal precedents cited and found that the denial of CENVAT Credit on Group Medical Insurance for employees had been settled by previous decisions. Relying on these precedents, the Tribunal held that the denial of credit on this service was unjustified and set aside the impugned order. As no additional arguments were presented by the appellant, the appeal was allowed solely on this ground.

In summary, the Tribunal's judgment addressed the issues raised in the Show Cause Notice, the arguments presented during the appeal hearing, and the legal precedents cited to determine the eligibility of CENVAT Credit on specific services. The decision highlighted the settled nature of the issue regarding Group Medical Insurance, leading to the allowance of the appeal solely based on this ground.