2016 (7) TMI 1174

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..... CENVAT Credit and the short-point for determination is the extent to which the premium does not relate to coverage of employees under the group insurance scheme. In the instant case, the appellant is charged with a premium which does not vary with the number of dependents who are additionally covered by the same insurance scheme. In other words, even if none of the dependents were within the cover .....

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..... er of business auxiliary services. To provide this service, appellant utilizes the services of other providers and the tax charged by these providers on the consideration was being availed as credit under CENVAT Credit Rules, 2004. Being an exporter of services, they were unable to utilise the credit so accumulated for discharge of tax dues. In accordance with the provisions of CENVAT Credit Rules .....

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..... pellant submits that the insurance policy documents would reveal that this is a family floater scheme in which the amount of premium payable does not increase merely because family members are included in the coverage. It is the contention on behalf of the appellant that as the total amount of premium payable for the employee pool will not be any less even if the family members were not included, .....

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..... remium on group insurance policy as the said service is an eligible input service and we hold accordingly. 5. Learned Authorised Representative, on the other hand, submitted that it is now well-settled in law that the credit of input service can be availed only to the extent that it is in relation to services which are directly utilised in manufacture of output or rendering output service and .....

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..... dditionally covered by the same insurance scheme. In other words, even if none of the dependents were within the coverage, the premium amount would not alter or vary. Accordingly no part of the premium can clearly be distinguishable as or attributable to the extension of coverage to family members. Consequently the decisions cited by the Learned Authorised Representative are also in favour of appe .....

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