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2016 (8) TMI 630 - AT - Service TaxCenvat credit - service tax paid on medi-claim insurance for the employees - Held that - the issue is no more res integra and has been settled in favour of the assessee in various decisions of the Tribunal as well as High Courts. By considering the Tribunal s decision in Kelly Services India Private Limited Vs. CCE 2015 (10) TMI 2228 - CESTAT NEW DELHI and in Cholayil (P) Ltd. 2013 (6) TMI 367 - CESTAT BANGALORE . Also the Hon ble Karnataka High Court s decision in CST Vs. Team Lease Services Pvt. Ltd 2014 (4) TMI 948 - KARNATAKA HIGH COURT and in Stanzen Toyotetsu India (P) Ltd. 2011 (4) TMI 201 - KARNATAKA HIGH COURT and various other decisions, the service tax credit on medical claim for employees of the appellant is available. - Decided in favour of appellant
Issues Involved: Eligibility of appellant for cenvat credit of service tax paid on medi-claim insurance for employees.
Analysis: The judgment concerns the eligibility of the appellant for cenvat credit of service tax paid on medi-claim insurance for employees. The appellant contested the denial of credit related to medi-claim for employees while having already paid the service tax credit for medi-claim of family members. The appellant argued that similar issues had been settled in their favor by various decisions of High Courts and Tribunals, citing an appeal memorandum listing cases supporting their position. The appellate tribunal, after hearing both sides and examining the appeal records, found that the issue was no longer res integra and had been settled in favor of the assessee in multiple decisions of Tribunals and High Courts. Specific references were made to decisions such as Kelly Services India Private Limited Vs. CCE, where eligibility for such credit was upheld. The tribunal also cited decisions from the Hon'ble Karnataka High Court and other tribunal decisions supporting the availability of service tax credit on health insurance services for employees. Based on the cited decisions and the interpretation of entitlement to service tax credit on insurance for employees and family members, the tribunal found no merit in the impugned order. Consequently, the tribunal set aside the order with reference to the service tax credit on medical claims for employees. The appellant had already reversed the credit availed for family members with interest. The tribunal also noted that no malafide could be attributed to the appellant for the earlier non-payment of credit related to family members' medi-claim, leading to the setting aside of the penalty imposed. Therefore, the appeal was allowed to the extent of credit availability on medi-claim insurance for employees and the setting aside of the penalty.
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