TaxTMI 
TaxTMI 
2011 (1) TMI 246
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.... 2. Heard both sides extensively. 3. On each of the disputed items, the submissions of both sides and the findings are recorded as follows:- (a) Group insurance/mediclaim policy (i). The party is aggrieved that the credit of the service tax paid on mediclaim insurance and group insurance policy taken for their employees/staffs who are not covered by the ESI has been disallowed. This has been disallowed on the ground that the same cannot be considered as input service in terms of the activities relating to business. (ii). Learned Authorised Representative for the company submits that in respect of category of employees and officials who are not covered by the ESI, they are required to make compensation ....
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....ue is, therefore, allowed. (b) CHA services (i). The department is challenging the allowing of credit on service tax paid on CHA services. (ii) The Commissioner (Appeals) has relied upon the decision of the Tribunal in the case of Adani Pharmachem Pvt.Ltd. reported in 2008 (12) STR 593 and the Service Tax Circular No.97/8/2007 dated 23.8.07 and held that the supply of the goods for export was on FOB basis and, therefore, ownership, possession associated with obligation relating to loss or damage of the goods till they are delivered on board the ship rest with the party and therefore CHA services should be treated as input service. (iii) Para8.2 of the Board s Circular No.97/8/2007 dated 23.8.07 reads as follo....
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....goods remained with the seller of the goods till the delivery of the goods in acceptable condition to the purchaser at his doorstep; (ii) the seller bore the risk of loss or damage to the goods during transit to the destination; and (iii) the freight charges were an integral part of the price of goods. In such cases, the credit of service tax paid on the transportation upto such place of sale would be admissible if it can be established by the claimant of such credit that the sale and the transfer of property in goods (in terms of definition as under Section 2 of the Central Excise Act, 1944 as also in terms of the provisions under Sale Goods Act, 1944 as also in terms of the provisions under the Sale of Goods Act, 1930) occurred at the s....
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....party is in respect of transporting employees to and fro to the residence. (iii). From the facts of the case, it is noticed that the vendors and clients have been transported from the guest house to the factory and vice versa and these activities can be legitimately considered as business activities in relation to the clearance of final products from the respondents factory. The vendors are suppliers of raw materials/components and they are concerned with the activities of the respondents relating to the procurement of those materials which go into the manufacture of the final products. The transportation facility given to the clients are to enable to sell their products and naturally part of the business activities. Therefore, I do....