9911796707
TMI Blog2024 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... mation and Data Services etc. During audit, it appeared that the appellant had availed ineligible CENVAT credit on the service tax paid on various insurance services and hence Show Cause Notices and statement of demands were issued to them proposing to recover the ineligible credit availed by the appellant. After due process of law, the original authority allowed CENVAT credit availed on marine insurance but disallowed CENVAT credit availed on the premium paid for insurance for software engineers as it is not a statutory requirement. The appeal filed by the appellant before the Commissioner (Appeals) was remanded to the original authority to re-quantify the credit not examined in the adjudication order. Aggrieved by the remand order, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input service tax credit. He hence prayed that the impugned order may be set aside and consequential relief be granted to the appellant. 4. Revenue, on the other hand, has stated that it was the appellant who in their reply to the Show Cause Notice had stated that they have a business establishment and were engaged in the development of information technology services which statutorily required the Appellant to cover certain employees statutorily under the Workmen Compensation Act, 1923 and cannot now say that the matter should not have been decided based on the said legal issue. Further, the definition of 'input service' with effect from 1.4.2011 excluded health insurance, life insurance etc. when used primarily for personal use or consum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctly in or in relation to the manufacture of the final product but also includes activities related to business. The learned Commissioner (Appeals) has himself extended credit of service tax paid on group insurance of employees and their families prior to 01.04.2011. The CENVAT Credit Rules, 2004 was introduced by superseding the CENVAT Credit Rules, 2002 and Service Tax Credit Rules, 2002, with the object to extend credit of service tax and excise duty across goods and services. Hence the change in the definition of 'input service' with effect from 01.04.2011 to excluded health insurance, life insurance etc. when used primarily for personal use or consumption of any employee, cannot be read to restrict tax paid on insurance for capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersonal use or consumption of any employee. 7. I find that the dispute involves interpretation of the statutory provisions of the CENVAT Credit Rules, 2004 involving the definition of 'input service' and does not involve mis-declaration, with intention to evade payment of duty. This is also clear from the fact that the matter is being remanded by the Commissioner ((Appeals) for verification of facts in consonance with the law. Hence the extended period could not have been evoked nor penalty could have been imposed. 8. Having regard to the facts as discussed above while allowing the remand, the invocation of the extended period and the imposition of penalty in the impugned order is set aside. The appeal is disposed off accordingly. (Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
