2010 (12) TMI 251

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..... apital goods whether in the factory or in transit and similarly the group insurance of the workers and staff is very much part of the business activity and every manufacturer or service provider has to use these services for his business As regards, the denial of refund relating to the group insurance/health policy is concerned, it is not disputed that there is no mandatory requirement to provide .....

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..... ard both sides. 3. Learned CA submits that term input service is very wide and it includes all services connected to the business activities of the service provider. The service of house keeping has been utilized as input service and the credit taken has been under management, maintenance and repairs services provided the service provider. As regards group insurance, they were provided as busines .....

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..... manufacturer or service provider has to use these services for his business. With these observations, the credit on services relating to insurance of workers was allowed. 4. Learned CA also submits that in the absence of specific formulation for the service industries, the concept of CAS-IV should be taken into account and the expenses on services which go to the cost of the service exported by t .....

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..... g analogy to the service sector is not warranted. 6. I have carefully considered the submissions made from both sides. The denial of refund of Rs.18,917/- relating to the house keeping service was on the ground that such service did not fall within the definition of input service under Rule 2(1) of Cenvat Credit Rules, 2004 as held by the original authority. This view cannot be upheld. Though, th .....

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..... to the employees. No doubt, whatever expenses incurred for whatever benefit extended to the employees will also form part of the cost of output service. Merely because the cost of certain service form part of the output service, the same cannot be treated as input service eligible for credit. 8. In the facts and circumstances off the case, the services of group insurance provided is clearly in t .....

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