Appellate Tribunal allows CENVAT credit for Service Tax on insurance services

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellant, allowing the appeal regarding the denial of CENVAT credit for Service Tax paid on insurance services. The Tribunal highlighted the integral connection of insurance coverage for employees with the appellant's business, particularly referencing workmen compensation under the Factories Act. It concluded that there should not be a denial of CENVAT credit in such circumstances.

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The Appellate Tribunal CESTAT Mumbai allowed the appeal of the appellant regarding the denial of CENVAT credit for Service Tax paid on insurance services. The Tribunal emphasized the integral connection of insurance coverage for employees with the business of the appellant, citing the provision of workmen compensation under the Factories Act. The Tribunal ruled in favor of the appellant, stating that there should not be a denial of CENVAT credit in such cases.

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