Appellate Tribunal allows Cenvat credit on insurance premium for Employees Compensation Policy

The Appellate Tribunal CESTAT CHENNAI allowed the appeal challenging the Order-in-Appeal that denied input service tax on insurance premium for an Employees Compensation Insurance Policy. Citing legal precedents and emphasizing the permissibility of Cenvat credit on insurance services for employees' welfare, the Tribunal found the denial of credit unsustainable. The impugned Order was set aside, and the appeal was allowed with any consequential benefits, supporting the assessee's claim for Cenvat credit on insurance services.

---

---

Issues Involved:
Challenge to Order-in-Appeal regarding input service tax on insurance premium for Employees Compensation Insurance Policy.

Analysis:
1. The appeal challenges the Order-in-Appeal No. 64/2017 dated 09.08.2017, where the Commissioner (Appeals) reversed the Order-in-Original, holding the availment of input service tax on insurance premium as incorrect.
2. The period of dispute is April 2012 to March 2016, post-01.04.2011. The issue revolves around whether the assessee is entitled to Cenvat credit on insurance services. The Tribunal cited precedents like Hindustan Coca Cola Beverages Pvt. Ltd. and NTF India Pvt. Ltd. to support the assessee's claim.
3. The Tribunal emphasized that insurance services for employees' welfare under the Factories Act are permissible for Cenvat credit. The judgment in Fiem Industries Ltd. v. Commissioner of Central Excise, Chennai-III supported the assessee's claim for Cenvat credit on insurance services for employees in hazardous situations.
4. Based on the legal precedents and the nature of insurance services availed by the assessee, the Tribunal found the denial of Cenvat credit unsustainable. Consequently, the impugned Order was set aside, and the appeal was allowed with any consequential benefits.

This detailed analysis of the judgment highlights the legal arguments, precedents cited, and the final decision of the Appellate Tribunal CESTAT CHENNAI regarding the challenge to the Order-in-Appeal concerning input service tax on insurance premium for Employees Compensation Insurance Policy.

---