2019 (2) TMI 1244 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – Overseas Mediclaim Insurance Policy for employees who were sent for undertaking works in their project abroad – Held that:- The definition of “input service” with effect from 01.04.2011 excludes life and health insurance services availed for personal use or for personal consumption of employees – The definition of “input service” with effect from 01.04.2011 excludes life and health insurance services availed for personal use or for personal consumption of employees
–
The Hon’ble jurisdictional High Court in the case of M/s. Ganesan Builders Ltd., [2018 (10) TMI 269 – MADRAS HIGH COURT] has analysed the very same issue with regard to the definition of “input ser
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e department issued show-cause notice proposing to disallow the credit on such insurance services alleging that these are excluded from the definition of Input Services . After due process of law, the original authority disallowed the credit and confirmed the demand along with interest and also imposed penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellants, the learned counsel Ms.S. Sridevi submitted that the insurance policies are taken in the name of the employees who are deputed to undertake the works in the projects abroad. These are not for the personal use or for the consumption of employees. The policies have been taken as per the mandate of labour legislations. It is incumbe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
at these insurance policies were availed for covering the risk of employees, who undertake works in their projects abroad. The labour legislations in India mandate that the employer covers the risk of such untoward incidents or injuries that may happen to the employees at work site. The Hon ble jurisdictional High Court in the case of M/s. Ganesan Builders Ltd., (supra) has analysed the very same issue with regard to the definition of input service , after 01.04.2011 and held that credit on such insurance services is eligible. After appreciating the facts of the case as well as following the decision of the jurisdictional High Court, I am of the view that credit is eligible. The impugned order is set aside. The appeal is allowed with conseq
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =