2021 (12) TMI 1393 - AT - Service Tax

Appeal success: Cenvat benefit granted for Group Mediclaim & Personal Accident Insurance. Denial upheld for other insurances.

The Tribunal partly allowed the appeal, setting aside the denial of Cenvat benefit on Group Mediclaim Insurance and Group Personal Accident Insurance, ... CENVAT Credit - input services - Group Mediclaim Insurance - Group Personal Accident Insurance - Insurance on Commercial Vehicle - Insurance on Contractor’s Plant & Machinery - Insurance on Private Cars - period 2011-12 - Rule 2(l) of the Cenvat Credit Rules, 2004 - credit denied on the ground that under the amended definition of Input Service, Group Mediclaim and Group Accident Policies were specifically excluded for consideration as input service. Group Mediclaim Insurance - Group Personal Accident Insurance - HELD THAT:- The CBEC vide Circular No.943/4/2011-CX dated 29.04.2011 had clarified that if the provisions of service had been completed before 01.04.2011, the credit on such services should be available even if the credit particulars are entered in the Cenvat register after amendment of the definition of input service. Since, on this specific issue, the CBEC has clarified regarding entitlement of credit after the period 01.04.2011 for the services availed prior to such date, the impugned order passed by the Commissioner (Appeals) is denying in Cenvat benefit cannot be sustained. Therefore, the impugned order denying the Cenvat benefit on Group Mediclaim Insurance, Group Personal Accident Insurance, is set aside and the appeal to such extent is allowed in favour of the appellant. Commercial Vehicle - Insurance on Contractor’s Plant & Machinery - Insurance on Private Cars - HELD THAT:- The appellant did not press for the stand taken in this appeal for allowing the cenvat benefit. Thus, there are no infirmity in the impugned order insofar as the credit on those services was denied to the appellant. Accordingly, the appeal of the appellant to such extent is dismissed. The appeal filed by the appellant is partly allowed. Issues: Denial of Cenvat Credit on various disputed services including Group Mediclaim Insurance, Group Personal Accident Insurance, Insurance on Commercial Vehicle, Insurance on Contractor's Plant & Machinery, and Insurance on Private Cars.Analysis:1. The dispute revolved around the denial of Cenvat Credit on different services. The Commissioner allowed Cenvat benefit for Group Mediclaim Insurance and Group Personal Accident Insurance for the period 2009-10, citing the pre-amended provisions of Rule 2(l) of the Cenvat Credit Rules, 2004. However, for the period 2011-12, the credit was denied due to the amended definition of Input Service excluding these services. The Commissioner also held that health service cannot be considered an input service for Cenvat benefit.2. The CBEC's Circular No.943/4/2011-CX clarified that if service provisions were completed before 01.04.2011, credit on such services should be available even after the amendment of the definition of input service. Considering this clarification, the Tribunal set aside the order denying Cenvat benefit on Group Mediclaim Insurance and Group Personal Accident Insurance, allowing the appeal in favor of the appellant.3. However, for services like Insurance on Commercial Vehicle, Insurance on Contractor's Plant & Machinery, and Insurance on Private Cars, the appellant did not press for allowing the Cenvat benefit. Consequently, the Tribunal found no fault in denying credit on these services, leading to the dismissal of the appeal concerning these services.4. In conclusion, the Tribunal partly allowed the appeal filed by the appellant, setting aside the denial of Cenvat benefit on Group Mediclaim Insurance and Group Personal Accident Insurance while upholding the denial of credit on Insurance on Commercial Vehicle, Insurance on Contractor's Plant & Machinery, and Insurance on Private Cars. The decision was pronounced in the open court.