Case Law Details
Reliance Industries Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Mumbai)
CESTAT Mumbai held that insurance premium paid for group insurance to cover employees opting for Voluntary Separation Scheme (VSS) amounts to input service and accordingly cenvat credit available under Cenvat Credit Rules, 2004.
Facts- The appellant, M/s Reliance Industries Ltd, manufacturer of excisable goods at their facility in Vadodara, had been issued with show cause notice denying CENVAT credit which ultimately was limited to Rs. 13,31,172/- held as ineligible for being premium paid for group insurance to cover employees opting for ‘Voluntary Separation Scheme’ (VSS) in March 2010. The order was upheld by Commissioner (Appeals) leading to this present appeal.
Conclusion- In identical case it is held that credit can be availed on the amount of insurance premium paid by the appellant to the insurance company for availing mediclaim of employees who had opted for the VSS announced by the appellant as the service that was rendered would amount to ‘input service’ in terms of Rule 2(l) of the 2004 Rules, as it stood at the relevant time; it being in relation to activities relating to business.
FULL TEXT OF THE CESTAT MUMBAI ORDER
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