2018 (5) TMI 21 - AT - Central Excise

CENVAT credit - Bank Processing Charges - Insurance Policy relating to group insurance taken for the factory staff - Held that - the appellant has availed credit on the basis of the document of Bank of India dt.28.03.2013 wherein the value of services rendered and also the service tax paid by the Bank has been mentioned - credit allowed. Group Insurance Policy - Held that - the issue is covered by the judgement of Hon ble Karnataka High Court in Micro Labs Ltd s case 2011 (6) TMI 115 - KARNATAKA HIGH COURT , where it was held that Group Insurance Health Policy taken of the assessee is a service which would constitute an activity relating to business which is specifically included in the input service definition - credit allowed. Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
- Appeal against order-in-appeal disallowing Cenvat credit on Bank Processing Charges and Insurance Policy related charges.

Analysis:
The appeal in this case was filed against the order-in-appeal passed by the Commissioner (Appeals) of Central Excise, Customs, and Service Tax-Surat-II. The main issue revolved around the entitlement of the appellant to avail Cenvat credit of certain amounts paid on Bank Processing Charges and Insurance Policy related to group insurance for factory staff. The appellant, represented by a Chartered Accountant, argued that the credit for service tax paid on Bank Processing Charges was disallowed by the Ld. Commissioner (Appeals) due to lack of evidence of payment by the Bank. However, the appellant submitted a document from Bank of India indicating the service tax collection against the processing charges, asserting that the credit should be allowed. Additionally, the appellant referenced another order by a different Commissioner (Appeals) where similar credit was permitted. Regarding the service tax paid on Group Insurance Policy, the appellant relied on a judgment of the Hon'ble Karnataka High Court to support the admissibility of the credit.

The Revenue, represented by the Ld. AR, supported the findings of the Ld. Commissioner (Appeals) during the proceedings. Upon reviewing the records, the Hon'ble Member (Judicial) found that the document from Bank of India clearly detailed the value of services rendered and the service tax paid, making it sufficient to avail credit for service tax paid on Bank Processing Charges. Consequently, the credit amounting to ?2,84,265/- was deemed admissible to the appellant. Regarding the service tax paid on the Group Insurance Policy, the issue was deemed covered by the judgment of the Hon'ble Karnataka High Court in a specific case. As a result, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law, as per the pronouncement made in the open Court.