2019 (12) TMI 721

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..... ployees State Insurance Act and therefore the Commissioner (Appeals) has erred in holding that they are not so covered by ESI Rules. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 31058 of 2018 - Final Order No: 31061/2019 - Dated:- 7-11-2019 - HON'BLE MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Mr V. Ravindranath Adv for the Assessee. Mr C. Mallikarjuna Reddy A.R. for the Respondent. ORDER PER:P.VENKATA SUBBA RAO This appeal is filed against order-in-appeal No. VIZ-EXCUS -001-APP-254-17-18 dated 27.02.2018. Heard both sides and perused the records. The appellants are a proprietary concern who sell motor cycles .....

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..... ies for employees taken by the appellant during the period 2009-10 and 2010-11, Revenue filed an appeal before the first appellate authority who, by the impugned order, allowed the Revenue s appeal and confirmed the recovery of ₹ 63,835/- along with interest and imposition of penalty on this amount upon the appellant. Hence this appeal. 3. Learned counsel for the appellant would submit that prior to 2011, the definition of input service under CENVAT Credit Rules 2004 did not exclude health and life insurance policies taken by the appellant for the welfare of their employees. It is only with effect from 2011, these policies have been excluded from the definition of input service. While dealing with the matter pertaining .....

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..... 2) Sundaram Brake Linings Vs CCE Chennai [2014(34)STR 583(Tri-Che)] 3) Murugappa Morgan Thermal Ceramics Ltd Vs CCE Chennai[2016(45)STR74(Tri-Che)] 5. Learned A.R. supports the impugned order. I have considered the arguments of both sides. Prior to 01.04.2011, there was no specific exclusion of any service from the definition of input service . It is a settled legal position that during that period any service which was used in the course of business qualified as input service for that business. On this ground alone, the impugned order needs to be set aside. Even otherwise, the learned counsel has also demonstrated that they are also covered by the Employees State Insurance Act and therefore the Commissio .....

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