2009 (6) TMI 244

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.... and Group insurance to the employees. 3. After hearing both sides and on perusal of the records, admissibility of credit on the above items are discussed as under:- (a) Landline Telephone - The Commissioner (Appeals) observed that these telephones are installed at the residence of the staff. So, the denial of credit is correct. The Hon'ble Gujarat High Court in the case of CCE v. Excel Crop Care Ltd., reported in 2008 (12) S.T.R. 436 (Guj.) held that the phones were not installed in the factory premises, cannot be termed to be a ground to deny the credit. In the present case, there is no allegation that the Landline was not used in relation to business activity. I find that the credit was denied only on the ground that Landline te....

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....hamiana - Commissioner (Appeals) observed that the services were availed in case of some exigency and it has no relation with the business of the appellants. Learned DR submits that there is no material available that Pandal & Shamiana services were rendered in the business activities. He also submits that bills were not raised in the name of appellant Pandal & Shamiana services. Learned Advocate relied upon the decision of the Larger Bench of the Tribunal in the case of CCE, Mumbai-V v. GTC Industries Ltd., reported in 2008 (12) S.T.R. 468 (Tri.-LB). He submits that Pandal & Shamyana services were rendered for the business activities insofar as the functions of the factory. I find that the Larger Bench of the Tribunal in the case ....

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....f the service is purely for business purpose, hence, it is squarely covered under the definition of service." As such, there is no reason to deny the credit on Pandal & Shamiana. (d) Group Insurance Services - It is seen that the Commissioner (Appeals) allowed the credit relating to Insurance of cars & Two wheelers which are owned by the appellants and are used in performing the business activities but, he denied the credit on personal insurance policies of the employees covered by the National Insurance Company. I find that the Tribunal allowed the credit on Group Mediclaim policy and Workmen's Accident Policy in the following cases:- (i) CCE&C, Aurangabad v. Endurance Systems India Pvt. Ltd. - 2009 (237) E.L.T. 204 (Tri.-Mumbai);....