Input service treatment for contract-worker insurance supported waiver of pre-deposit and stay during appeal.

Insurance premium paid for contract workers engaged in a factory was treated prima facie as an input service linked to manufacture for purposes of waiver of pre-deposit and stay. The order accepted, at least tentatively, that there was a statutory obligation to protect persons working in the factory and that the insurance was also incurred in the course of business. On that basis, the services used for such insurance were considered capable of qualifying as input services, and waiver of dues for admission of the appeal was granted with recovery stayed during the pendency of the appeal.

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Issues: Whether, for the purpose of waiver of pre-deposit and stay during the pendency of the appeal, the insurance premium paid for contract workers in the factory could be treated prima facie as an input service connected with manufacture.

Analysis: The contract workers were engaged in the factory and the appellant relied on the statutory definition of workers under the Factories Act to support the obligation to insure such persons. The order recorded a prima facie acceptance of the view that there was a statutory obligation to protect persons working in the factory, and even otherwise the insurance was undertaken in the course of business. On that basis, the services used for such insurance were considered prima facie capable of being treated as input services for manufacture.

Conclusion: Waiver of dues for admission of the appeal was granted and recovery was stayed during the pendency of the appeal.

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