2014 (5) TMI 715

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aid on Group Health Insurance Policy obtained by them in respect of their employees and their family members. The learned counsel on behalf of the appellants submitted that the fact that family members are covered cannot prevent the appellants for being eligible for the credit. He relies on the provisions of Employees State Insurance Act for this purpose and submits that according to the Act, not only employees are eligible for getting treatment in the ESI hospital but also their family members. Therefore it is his contention that if the appellant obtained Group Health Insurance Policy for the family members of the employees also, credit cannot be denied. He also relies upon the decision of the Larger Bench in the case of CCE, Mumbai-V Vs. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rd to the submission made regarding the cost of production. In my opinion the first requirement to be seen is whether the credit is admissible as per the definition. At the threshold if the credit is not admissible, the question of examination as to whether such expenditure forms cost of production does not arise. In this case after examining the definition and the relevant statutory provisions, what is seen is that the service tax paid on Group Health Insurance for the family of the employees can in no way be held to be relatable to the business of manufacture of an assessee. Therefore I am unable to consider the observations in the GTC Industries Ltd. However I find that decision cited by the learned AR is directly on the subject and cove....