Tribunal allows credit for brokerage on employee housing; remands Group Medical Insurance decision for further review.

The Tribunal allowed the credit for brokerage paid for arranging residential accommodation for employees, citing precedents that deemed such charges essential for business operations. However, the decision on Group Medical Insurance was remanded for further examination to determine the eligibility of credit for any extra premium paid for family coverage, emphasizing the need for thorough investigation before disallowing credits.

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Issues:
1. Denial of benefit of service tax paid on brokerage for arranging residential accommodation for employees.
2. Denial of benefit of service tax paid on Group Medical Insurance for employees and their family members.

Analysis:
1. The first issue pertains to the denial of the benefit of service tax paid on brokerage given to agents for arranging residential accommodation for employees. The Tribunal referred to precedents to support the appellant's claim. Citing the case of Gateway Terminals (I) Pvt. Ltd. v. CCE and Toyota Kirloskar Motor Pvt. Ltd. v. CCE Bangalore, the Tribunal held that brokerage charges for finding residential accommodation for employees are essential for business operations and therefore qualify as Cenvatable input services. Consequently, the Tribunal allowed the credit for such brokerage paid by the appellant.

2. Regarding the second issue of Group Medical Insurance, the Tribunal acknowledged that previous decisions deemed it as a cenvatable service. However, the Tribunal highlighted the importance of examining whether any extra premium was paid by the appellant for covering the families of the employees. Referring to the case of John Deere India Pvt. Ltd. v. CCE Pune III and other decisions, the Tribunal emphasized that insurance covering family members and dependents of employees might not be eligible for credit. As the lower authority had disallowed the credit without investigating the payment of extra premium for family coverage, the matter was remanded for further examination. The Tribunal clarified that service tax paid on Group Medical Insurance for employees is admissible, but any additional premium paid for family coverage would not be eligible for credit.

In conclusion, the Tribunal disposed of both appeals by allowing the credit for brokerage paid for arranging residential accommodation for employees and remanding the decision on Group Medical Insurance to determine the eligibility of credit for any extra premium paid for family coverage.

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