2011 (12) TMI 399

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....Respondent: Mr Jai Kumar, Adv. This is an appeal by the department against the order of the Commissioner (Appeals) No.29/2009 (T) ST dated 28.10.2009. 2. Heard both sides. 3. The original authority disallowed CENVAT credit on service tax paid on insurance services relating to Group Medical Claim and Group Personal Accident Policies and consequently demanded a sum of Rs. 1,18,885/- along w....

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....lore-III reported as 2009 (14) S.T.R. 316 submits that Group Insurance Health Policy is to be specifically treated as an 'input services' and credit allowed. He also referred to the judgment dated 08.04.2011 of the Hon'ble High Court of Karnataka in the case of Stanzen Toyotetsu India Pvt. Ltd. and others and submitted that insurance coverage to the employees in area of health and granting cover f....

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....ka cited supra. The relevant portion reads as follows: "14. In so for as Insurance coverage to the employees is concerned in the course of employment if the employees suffer injury or dies, there is a vicarious liability imposed on the employer to compensate the employee. If the employer employs its own transportation facility in order to cover the risk which also includes the risk of workers w....

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.... May be the employees also have to contribute but the employer is under an obligation to take an Insurance Policy and contribute his share. Therefore, the said Group Insurance Health Policy taken by the assessee is a service which would constitute an activity relating to business which is specifically included in the input service definition." 7.2. As regards Group Insurance Health Policy, the ....