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TMI Blog2017 (7) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... h as legislation is within its right to amend the definition of "Input Services" and to include or exclude any of the services from its ambit. In any case, the Tribunal is not within its jurisdiction to decide on the vires of the said amendments - demand upheld. Penalty - Held that: - the appellants have availed the credit while reflecting the same in their account books as also in the various returns filed with the Revenue. Further, the issue involved is also a bonafide legal issue of interpretation of the provisions of law and cannot be held to be a malafide. In such a scenario, the imposition of penalty upon assessee is not warranted. Appeal dismissed - decided against assessee only except with regard to penalty, which is set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit Rules, 2004. Hence, the present appeal. 4. Learned advocate appearing for the appellants has pleaded that the insurance cover was taken by the company for the workers at their site as per the mandatory requirements of section 38 of the Employees' State Insurance Act, 1948. As such, it stands submitted that in as much as, the company is under a legal obligation to take insurance cover for their employees, it has to be held that the said services are directly having nexus to their output service and hence, is an input service. Learned advocate in support of his argument has relied upon the Tribunal's decision in the case of Sundaram Fasteners Ltd Vs Commissioner of Central Excise, Chennai reported in 2016 (43) S.T.R. 454 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppreciation the same is reproduced below: [but includes]: (a) . (b) .. . (c) Such as those provided to in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee. 8.1 Clause (c) of the exclusion part of the definition clearly leads to the fact that the various services mentioned therein stands excluded from the definition of Input Services . Life Insurance and Health Insurance are the two specific se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Similarly the fact that the appellant is obliged to provide such services under the Employees State Insurance Act, 1948 can also not to be held as ground to allow the credit, in as much as legislation is within its right to amend the definition of Input Services and to include or exclude any of the services from its ambit. In any case, the Tribunal is not within its jurisdiction to decide on the vires of the said amendments. Accordingly, the denial of the same along with confirmation of interest is upheld. 11. As regards penalty, I find that the appellants have availed the credit while reflecting the same in their account books as also in the various returns filed with the Revenue. Further, the issue involved is also a bonafide legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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