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TMI Blog2018 (11) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... l) ibid. The definition of input service, post amendment contains exclusion clause and the said exclusion specifically excludes the life insurance/health insurance. The need for exclusion would arise only when such services are otherwise covered by the definition earlier i.e before amendment. Tribunal in the matter of M/s. Wipro Ltd. Vs. CCE, Bangalore-III [2018(4) TMI 149- CESTAT BANGALORE] has observed that the legislature in its wisdom has excluded certain service from the availment of CENVAT credit w.e.f. 1.4.2011, when such service are otherwise covered by the main definition clause of the ‘input service’ - Since the insurance has been specifically excluded post-amendment, this itself shows that it was included in pre-amendment period. Appeal dismissed - decided against Revenue. - APPEAL NO: ST/86800/2018 - A/87967/2018 - Dated:- 20-11-2018 - Shri Ajay Sharma, Member (Judicial) Appellants: Shri Sudhir B. More, AC (AR) Respondent: Shri Jay Chedda ORDER The instant Appeal has been filed by the Revenue against the order dated 23.1.2018 passed by the Commissioner (Appeals-II) CGST Central Excise: Mumbai, by which the ld. Commissioner allowed the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance is necessary as it forms part of activities relating to business and that there is direct nexus between the said expenditure and the business of the Appellant s firm and that there is no dispute regarding the input service credit document and the payment of service tax. 3. The disputed period with regard to the denial of Cenvat credit on medical insurance services is prior to 1-4-2011 when the definition of input services included activities relating to business . The definition of input services as per Rule 2(l) of the Cenvat Credit Rules, 2004 is as under :- input service means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to setting up, modernization, 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 up to the place of removal, procurement of inputs, activities r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot go on the road. Under the Workmen s Compensation Act he has to obtain the Insurance Policy covering the risk of the employees. The Employees State Insurance Act takes care of the health of the employees also and casts an obligation on the employer to provide insurance services. Under these circumstances, this Group Insurance Health Policy though is also a welfare measure is an obligation which is cast under the Statute that the employer has to obey. Section 38 of the Employees State Insurance Act, 1948, mandates that subject to the provisions of the Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act. May be the employees also have to contribute but the employer is under an obligation to take an insurance policy and contribute his share. Therefore, the said Group Insurance Health Policy taken by the assessee is a service which would constitute an activity relating to business which is specifically included in the input service definition. 15. Therefore, merely because these services are not expressly mentioned in the definition of input service it cannot be said that they do not constitute inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f. 7. In a recent decision, the Tribunal in the matter of Deloitte Support Services India Pvt. Ld. Vs. CCE, Hyderabad-IV; 2017(5)GSTL 393(Tri-Bang.), while following the decision of the Hon ble Karnataka High Court in the matter of Stanzen Toyotetsu India (P) Ltd. (supra), has held as under:- Cenvat credit availed amount to ₹ 1,42,98,722/- during the period from 2006-07 to 2010 to 2011 has been demanded with interest and penalties under Finance Act, 1994 have been imposed. 2. The learned counsel submits that credit of service tax paid on group insurance premium and the rent-a-cab services have been disallowed on the ground that there is no nexus between the output services and the input services; the services on which credit so taken are not directly or indirectly relatable to the output services rendered; absence of services on which credit is availed does not adversely impact the quality and efficiency of the output services provided by the appellant. The learned counsel submits that the issue is no longer res integra and has been settled in favour of the appellants in view of the decision of the Tribunal in the case of KPMG v. CCE, New Delhi [2013-TIOL-761-C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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