Cenvat Credit - Service Tax paid on Mediclaim

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We are in a service Industry and we have provided Mediclaim Facility to our Employees in the Industry. We avail CENVAT credit on the Input Services. Now are we elegible to avail cenvat even on the Service Tax paid on Mediclaim which is charged by the Insurance Company?

AI Summary

Service industry can claim CENVAT credit on employee Mediclaim insurance under Rule 2(l), but departmental objections persist. A service industry entity questioned whether it can claim CENVAT credit on service tax paid for employee Mediclaim insurance. An expert clarified that under Rule 2(l) of the CENVAT Credit Rules, input services related to business activities, including employee Mediclaim, are eligible for credit. Another participant raised concerns about departmental objections and sought case law references. It was noted that while the department views Mediclaim as a welfare measure, not a business expense, strict interpretation suggests eligibility for credit. The issue's resolution may require a legal decision.