2008 (12) TMI 126 - AT - Central Excise

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 ... Credit of service tax paid on Group Mediclaim Policy and Workmen’s Accident Policy taken by the manufacturer for its workers - held that any expenses which form part of the manufacturing cost as per format prescribed in CAS-4 statement shall be allowable as credit. Since in para 5.2 of CAS-4, medical benefits are included, dispute in the present case is squarely covered by the Larger Bench decision vide order No. M/217-218/08/SMB/C-I/LB dated 25-9-08 - no merits in the appeal filed by Revenue and accordingly dismissed 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.