Cenvat credit on employee welfare insurance policies was upheld where no segregated disallowance for family-member coverage was shown.

Cenvat credit was treated as admissible on service tax paid for employee welfare insurance policies, including Group Mediclaim and Group Personal Accident Policies. The Tribunal applied its earlier view on the same issue and held that such policies fall within the settled credit framework when they relate to employees. The objection concerning the portion attributable to permitted family members was not accepted because no clear segregation or quantification of that amount was established. On that basis, the impugned order was set aside and consequential relief followed.

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Issues: Whether Cenvat credit was admissible on service tax paid in respect of Group Mediclaim Policy and Group Personal Accident Policy taken for employees and their permitted family members.

Analysis: The Tribunal followed its earlier decision on the same question and accepted that the service tax paid on such employee welfare insurance policies fell within the admissible credit scheme. The objection relating to the portion attributable to permitted family members was not entertained in the absence of clear quantification of that amount.

Conclusion: Cenvat credit was held admissible and the impugned order was set aside.

Final Conclusion: The appeal succeeded and the assessee obtained consequential relief.

Ratio Decidendi: Cenvat credit is admissible on service tax paid for employee welfare insurance policies such as Group Mediclaim and Group Personal Accident Policies where the credit claim falls within the settled eligibility framework and no clear segregated disallowance is established.

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