Appellate Tribunal allows service tax credit on medical benefits for workers

The Appellate Tribunal CESTAT MUMBAI ruled in favor of the respondent, allowing the credit of service tax paid on Group Mediclaim Policy and Workmen's Accident Policy for workers as medical benefits were considered part of manufacturing costs. The Revenue's appeal was dismissed, and the respondent's Cross Objection was disposed of.

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The Appellate Tribunal CESTAT MUMBAI ruled in favor of the respondent regarding the credit of service tax paid on Group Mediclaim Policy and Workmen's Accident Policy for workers. The decision was based on a Larger Bench ruling stating that medical benefits are part of manufacturing costs, allowing the credit. The Revenue's appeal was dismissed, and the respondent's Cross Objection was also disposed of.

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