2010 (12) TMI 251

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....ingh, SDR PER: M.VEERAIYAN This is an appeal against order of the Commissioner (Appeals)  in so far as the same related to upholding rejection of rebate of Rs.38,834/- on services exported holding that the services of group insurance, health policy, medical policy and services relating to house keeping could not be treated as input services. 2. Heard both sides. 3. Learned CA subm....

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....part of CAS-IV in the costing of production.  He also relies on the decision of the Tribunal in the case of CCE, Raipur vs. Raipur Rotocast Ltd reported in 2010 (16) STR 466 wherein it has been held that insurance of the capital goods whether in the factory or in transit and similarly the group insurance of the workers and staff is very much part of the business activity and every manufacture....

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....lating to the business.  Regarding group insurance/health policy/personal accident policy, he submits that these are not mandatory and are only part of the welfare measures undertaken at the option of the individual of company and the same cannot be treated as input service for extending credit.  CAS-IV is in respect of valuation of captively consumed products in the manufacturing sector....

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....Commissioners (Appeals) finding that there was no evidence that the man power was actually engaged in the activity relating to business cannot be held to be correct as house keeping is clearly necessary before rendering any service by the appellants.  7. As regards, the denial of refund relating to the group insurance/health policy is concerned, it is not disputed that there is no mandator....