Appellant entitled to Cenvat credit on insurance & pest control services under workmen's comp & property protection.

The appellant was entitled to Cenvat credit on insurance service for health insurance of factory employees as the service was availed to overcome hazards under the Workmen's Compensation Act. Additionally, the appellant was deemed eligible for Cenvat credit on service tax paid for Pest Control Service to protect the company's property, as it was integral to safeguarding the business. The Tribunal allowed the appeal, upholding the appellant's entitlement to Cenvat credit on both insurance service and Pest Control Service.

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Issues:
1. Entitlement to Cenvat credit on insurance premium paid for health insurance of factory employees.
2. Eligibility for Cenvat credit on service tax paid for Pest Control Service to protect company property.

Analysis:
1. The appellant claimed Cenvat credit on the service tax paid for insurance service availed for the health insurance of factory employees. The Revenue argued that the recent amendment to Rule 2(1) of Cenvat Credit Rules, 2004, effective from 1-4-2014, disallows Cenvat credit in certain circumstances. However, the appellant contended that the amendment only excludes insurance coverage for employees during journey under leave travel concession, not for welfare purposes under the Factories Act. The Tribunal agreed with the appellant, stating that if insurance service is availed to overcome hazards under the Workmen's Compensation Act, the Cenvat credit is permissible. Hence, the appellant was entitled to Cenvat credit on the insurance service.

2. Regarding the Pest Control Service availed to protect the company's property, the Revenue argued that it was not connected to the business, and thus, no Cenvat credit on the service tax paid could be claimed. However, the Tribunal disagreed, emphasizing that pest control to maintain the property of the assessee is integral to protecting the business. Therefore, the appellant was deemed eligible for Cenvat credit on the service tax paid for Pest Control Service. Consequently, the appeal was allowed, and the appellant's entitlement to Cenvat credit on both insurance service and Pest Control Service was upheld.

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