2018 (9) TMI 741 – CESTAT NEW DELHI – TMI – CENVAT Credit – Input Services – Club or Association Service – Life Insurance Service – Air Travel Agent Service – denial of credit on the ground that the services fall within the exclusion category specified in Rule 2 (l) (C) – Held that:- The services such as membership of club is not for the personal benefit of any employee, but are for pursuing the business activities of the appellant – credit allowed.
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Life Insurance Service – Held that:- It is noted that the appellant is under a statutory obligation to provide group insurance scheme in their factory for the benefit of the employees. This cannot be said to be for the personal benefit of the employees – Credit allowed.
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Air Travel Agent’s Service – Held that:- The said services have been availed by the officials of the appellant in regard to their business – credit allowed.
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Appeal allowed in toto – decided in favor of appellant. – E/50972/2018-SMC, E/51575/2018-SMC, E/515
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view that after the amendment of the definition of input service given in Rule 2 (l) of the Cenvat Credit Rules, 2004, certain activities have been excluded and the services for which the credit have been denied, fall within the category of excluded services. Aggrieved by the decisions, the appeals stand filed before the Tribunal. 3. Heard Shri R.K. Ambwani, Ld. Consultant for the appellant and Shri K. Poddar, and P. Juneja, Ld. DR for the Revenue. 4. The arguments advanced by the Ld. Consultant are summarized below:- i. The lower Authority has denied the Service Tax by contending that the services fall within the exclusion provided in 2(l) (C). But he argued that these services would be excludible only when such services are used primarily for personal use or consumption of any employee. By submitting copies of certain invoices covering the various services, he reiterated that services were not for personal use of any employee, but were used in relation to the activities of the compa
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consumption of any employee. Upon perusal of some of the sample invoices furnished by the Ld. Consultant, it is seen that services such as membership of club is not for the personal benefit of any employee, but are for pursuing the business activities of the appellant. For example, such services include membership of Indian Home & Personal Care Industry Association, Foreign Exchange Information Service etc. With reference to Life Insurance Service, it is noted that the appellant is under a statutory obligation to provide group insurance scheme in their factory for the benefit of the employees. This cannot be said to be for the personal benefit of the employees. With reference to Air Travel Agent s Service, the said services have been availed by the officials of the appellant in regard to their business. 7. It is also seen that identical issue has come up before the Tribunal and has been decided in favour of the appellant vide Final Order (Supra). 8. By following the same, the four
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