9911796707
TMI Blog2018 (7) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... 39 - CESTAT MUMBAI] has taken a view that medical insurance service is not eligible for credit, the said decision is not applicable to the facts of the present case for the reason that in the said case the insurance was taken for security agency i.e. CISF, who is not a direct employee of the assessee - credit allowed. Rent-a-cab service - Held that:- The ld. counsel has submitted that the said services are not used for activities relating to manufacture - demand upheld alongwith interest and penalties. Commercial construction service for the purposes of modernization and renovation of the factory and office premises - Held that:- Appellant says that the appellant would be able to furnish documents to establish the same - matter remanded to verify the issue. Commercial construction services which have been availed prior to 1.4.2011 - Held that:- The credit is allowed on this service. coating service (job work) - Held that:- Notification No.25/2012 dated 20.6.2012 came into force with effect from1.7.2012 which exempted service tax on such processing work done by the job worker. The authorities below have relied upon this notification to disallow the input service tax cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Construction (8,37,412) Coating Service (job work) (14,341) E/40345/2018 5/2011 to 4/2012 Air Conditioner Maintenance (9,756) Commercial Construction (11,67,230) E/40346/2018 4/2008 to 4/2011 Air Conditioner maintenance (35,276) Group Health Insurance (4,26,159) Commercial Construction (8,83,324)Penalty (13,44,759) 3.1 He submitted that the period involved in Appeal No.E/40341/018 and E/40346/2018 are both prior to 1.4.2011. In respect of group health insurance services, ld. counsel argued that in respect of demand in Appeal No.E/40341/2018, all the invoices except one is prior to 1.4.2011. That in any case, the said issue whether group health insurance service is eligible for credit has been held in favour of the appellant in their own case reported in 2016 (43) STR 454 (Tri. Chennai). The ld. counsel argued that the exclusion clause in definition of input service excludes insurance coverage given to employees during the journey availing leave travel allowance. The group health insurance in the present case was availed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/2012 dated 20.6.2012 to deny the credit. He argued that the said notification has come into existence only with effect from 1.7.2012, the appellant is eligible for credit. 3.6 Service tax paid on air-conditioner maintenance service has been rejected for the reason that these services have no nexus with the manufacturing activity. He submitted that it is necessary to maintain the air-conditioner which have been installed in the appellant s factory. He relied upon the decision in the case of Sarita Handa Exports (P) Ltd. Vs. Commissioner of Central Excise, Gurgaon 2016 (44) STR 654 (Tri. Chan.). 3.7 He prayed that the issues relating to convention service, commercial construction service may be remanded and the credit in respect of other services may be allowed. 4. The ld. AR Shri S. Govindarajan supported the findings in the impugned order. He submitted that the group insurance services are not eligible for credit since they are not related to the manufacturing activity of the appellant. He relied upon the decision of the Tribunal in the case of Hindustan Petroleum Corporation Vs. Commissioner of Central Excise, Mumbai- 2018 (12) GSTL 305 (Tri. Mum.) and argued that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y i.e. CISF, who is not a direct employee of the assessee. In the appellant s own case, for the period after 1.4.2011, as reported in 2016 (43) STR 454, the Bench has allowed the credit. The relevant portion is reproduced as under:- 4. So far as the Cenvat credit on insurance service is claimed, the exclusion of such service in certain events has been incorporated into the law with effect from 1-4-2011. That is only in respect of the insurance coverage given to employees during journey availing leave travel concession. But that had not taken away welfare of workers under the Factories Act, from its fold if insurance service is availed to overcome difficulties under Workmen s Compensation Act, in case of hazard. Accordingly, appellant s claim of Cenvat credit on the service tax paid to avail insurance service for employees employed in factory is permissible. Following the same, I hold that the group health insurance service prior to 1.4.2011 as well as after 1.4.2011 is eligible for credit. 6.2 With regard to rent-a-cab service, the ld. counsel has submitted that the said services are not used for activities relating to manufacture. The demand in respect of rent-a-cab s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
