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TMI Blog2014 (5) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... ance coverage to the families of employees and Section 38 requires only employees to be covered. Therefore the submission relating to ESI Act cannot be accepted - if the credit is not admissible, the question of examination as to whether such expenditure forms cost of production does not arise. In this case after examining the definition and the relevant statutory provisions, what is seen is that the service tax paid on Group Health Insurance for the family of the employees can in no way be held to be relatable to the business of manufacture of an assessee - Matter remanded back for re quantification - Decided partly in favour of assessee. - E/2554/2012-SM - Final Order No. 20020/2014 - Dated:- 3-1-2014 - SHRI B.S.V.MURTHY, J. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of credit of service tax in respect of Group Health Insurance would be available only in respect of the insurance cost attributable to employees and not to the family members. He relies on the decision of the Tribunal in the case of Semco Electric Pvt. Ltd. Vs. CCE, Pune-I [2012 (276) E.L.T. 94 (Tri.-Mum.)]. 4. I have considered the submissions made by both the sides. As regards the submission relating to ESI Act, the fact that employees family are treated in the ESI hospital is not of relevance for the purpose of examination of admissibility of credit of service tax. Section 38 of the ESI Act requires all employees to be insured. This shows that it is not obligatory for an employer to insure that the employees family also are covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) himself has waived the penalty under Rule 15(2) of CENVAT Credit Rules read with Section 11AC of Central Excise Act 1944. When penalty under Section 11AC is waived, the question of invocation of extended period would not arise. I find myself in agreement with this submission. Accordingly the demand has to be limited to the normal period. 6. It was also submitted that entire credit has been disallowed whereas even according to the precedent decisions, the appellant would be eligible for the benefit of credit of service tax in respect of Group Health Insurance taken for the employees. If that is the case, there is a need to identify the cost of insurance and the tax attributable to such cost in respect of family members and limit t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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