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TMI Blog2018 (10) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal, South Zonal Bench, Chennai, (in short, "the Tribunal") is filed by the assessee. 2. The appeal has been admitted vide order dated 05.10.2017 on the following substantial questions of law : "(i) Whether the Service Tax amount, paid on insurance services provided by the appellant to workers working at their site, as per the mandatory requirement of labour laws, is one of the excluded services for the purposes of clause (c) of the definition of "input services" under Rule 2(l) of Cenvat Credit Rules, 2004 ? (ii) Whether such insurance services to be mandatorily provided by employer under labour laws, being a cost to the appellant in relation to the rendering of taxable service of the appellant, be an eligible input service for ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 2004 for the contravention, as mentioned supra. 4. The assessee filed their reply dated 22.10.2015 contending that their right to avail CENVAT credit cannot be restricted by brining it under the exclusion clause issued by Notification under Section 94 of the Act and the expression "personal use or consumption of any employee" is not defined under the CENVAT Credit Rules and thus, the expression is left open for interpretation and the term "personal use of a service" by an employee is in contrast with "official use". Further, the assessee contended that the services which are essentially consumed by the employees in their official capacity is distinguishable from the services which are consumed by them purely in their personal capacity a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that in so far as the expression "and" used between two expressions "health insurance" and "Travel benefits" is disjunctive and is not required to be read along with the expression "health insurance". Further, it held that the exclusion clearly mentions various services, including life insurance and health insurance, as not covered by input services. It is further held that the travel benefits extended to the employees at the time of leave or home travel concession also stand excluded and therefore, there is no warrant to read excluded health insurance services with the travel benefits for leave etc. and the contention of the assessee that the health insurance services, which stand excluded are only which are extended during leave, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng carried on and in the copies given to us the addresses are : No.144, Rajiv Gandhi Salai, Chennai- 41 and (ii) SIPCOT Industrial Park, Irungulam, Podur Village, Sriperumbudur. The description of the employees for whom premium has been paid are not described by their names, but by their vocation/skill, namely, Mason, Helper, Stone Cutter, Barbender and his Helper, Carpenter and his Helper, Painter and his Helper, Store Keeper, Electrician, Supervisor, Plumper, Welder, Tiles Mason, etc. Therefore, we are required to consider as to why the assessee is required to avail such a policy. This is so because of a statutory requirement under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) S.T.R. 88 (Tri.-Hyd.), Outdoor Catering Services provided to employees/labourers within the factory premises, in compliance of statutory requirement under the Factories Act, 1948, was held to be eligible to input service credit even after amendment dated 01.04.2011 in Rule 2(l) of CENVAT Credit Rules, 2004. 12.2. In Hydus Technologies India Pvt. Ltd. V. CCE, Hyderabad, 2017 (52) S.T.R. 186 (Tri.-Hyd.), input service to Group Gratuity Insurance, employee deposit linked insurance and employee health were held to be not insurance services used primarily for personal use or consumption of the employee and all insurance services availed under various Labour Legislations enacted for welfare of employees/workers, being the benefit bestowed by o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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