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TMI Blog2022 (3) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... d Scheme and provides maximum payments to the insured persons nominated beneficiary in the event of death due to natural cause accident or illness. Department has not produced anything on record to show that the services of Provident Fund were availed for the personal benefit of employees whereas what is apparent from the documents and contentions of the appellant that the life insurance services were availed by appellant for all of its employees under statutory mandate and not for the individual and personal consumption. Commissioner (Appeals) has failed to appreciate the statutory mandate of the appellant being the employer to get insured its employees - appeal allowed - decided in favor of appellant. - Excise Appeal No. 51753 of 2021 [SM] - FINAL ORDER No. 50275/2022 - Dated:- 9-3-2022 - MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Ms. Sudeshna Banerjee, Advocate for the Appellant Mr. Gopi Raman, Authorised Representative for the Respondent ORDER The appellant herein is engaged in manufacturing of excisable goods i.e V.E Distributer Fuel Injection Pump, components of said Pump and was also availing Cenvat Credit. Cenvat Credit amounting to ₹ 73,819/- w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant are vehemently denied. With these submissions, the order under challenge is prayed to be set aside and appeal is prayed to be allowed. 4. To rebut these submissions ld. DR has laid emphasis upon the definition of input services in rule 2 (l) of Cenvat Credit Rules, 2004, the exclusion clause thereof precisely. It is mentioned that the Commissioner (Appeals) relying upon the said rule has formed an opinion that the services provided in relation to insurance are specifically excluded from the said definition of input services. It is impressed upon that there is no infirmity in the order when based upon those observations the Cenvat Credit of Service Tax paid for life insurance for the employees of the appellant is held not admissible. The order under challenge is prayed to be upheld and appeal is prayed to be dismissed. 5. After hearing the rival contentions and perusing record, I observe and hold as follows:- The adjudication requires to ascertain as to: Whether the staff insurance services being availed by the appellant for its employees is an eligible input service or not for availment of Cenvat Credit. 6. The adjudicating authorities relying upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the cost-to-company package of the employee. In their case, the benefit of insurance is not going to the employees at all. As per the Workmen Compensation Act, 1923, the employees are entitled to compensation whether or not the appellant takes the insurance policy. The amount of compensation is also fixed as per law. This potential liability of the company was sought to be covered by the insurance policy which they have taken. Learned Counsel takes us through the copy of the insurance policy, which shows that the insured is the appellant and not the individual employees. Therefore, in terms of clause (C) of Rule 2(l) of CCR, 2004 these insurance services are not excluded from availing Cenvat credit being not for personal use of employee but for the appellant - employee s Statutory Mandate. Therefore, learned Counsel submits that the question before the Larger Bench may be answered in favour of the assessee. 9. The issue is otherwise no more res integra. This Tribunal in Hydus Technologies (supra) has specifically held that unless there is some document to establish that the insurance services are availed for personal use or personal consumption of the employee, the services sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i-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 (in short, the 1996 Act ). Under the said Act, the Workmen s Compensation Act, 1923 has been included in the Second Schedule of the 1996 Act and the provisions of Workmen s Compensation Act, 1923 has been made applicable to the building workers. 11. Thus, the inclusion of the Workmen s Compensation Act in the 1996 Act, a beneficial legislation, is for the purpose of protecting workmen, who generally belong to unorganized sector. The policy does not name the employees, but categorized the employees based on their vocation/skill. The insu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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