TaxTMI 
TaxTMI 
2014 (9) TMI 877
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....8/- availed during August, 2006 stands denied by the impugned order and there is also a penalty of Rs. 5,000/- imposed on the applicant under Rule 15 of the Cenvat Credit Rules, 2004. 2. The learned counsel for the applicant submits that it has been decided by the Hon'ble Karnataka High Court in the case of CCE v. Micro Labs Ltd. - 2012 (26) S.T.R. 383 (Kar.) = 2011 (270) E.L.T. 156 (Kar.) that Service Tax paid on group insurance and health insurance policy for employees is an input service on which credit can be allowed. There is a similar decision by the same High Court in the case of CCE v. Stanzen Toyotetsu India (P) Ltd. - 2011 (23) S.T.R. 444 (Kar.). He submits that accidental death or even sickness of employees cause disrupti....
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....After considering the illustrative list, the Court came to the conclusion that all services the cost of which become part of the cost of the business cannot be considered as input services for such reason alone. So, he argues that in this case also, just because the cost is incurred by the applicant, it cannot be concluded that it is a service required for manufacturing the final product. His submission is that input services which have only direct nexus with the manufacturing activity should be considered as input service. 4. I have considered the arguments of both sides. The definition of input services at Rule 2(l) of the Cenvat Credit Rules, 2004 is as under :- "input service" means any service, - (i) &nbs....
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.... workmen, when employees fall sick, it is necessary that they are provided proper treatment so that they are brought back to work without loss of man hours and desruption of manufacturing lines and the employer may take insurance for arranging proper medical attendance for sick workman or other employees of the company. Therefore, the medical insurance in relation to the employees of the company are also within the broad definition of input service given at Rule 2(l) of the Cenvat Credit Rules, 2004. It is this position that has been affirmed by the Hon'ble Karnataka High Court in the two judgments cited above. 6. Though the decision of the Hon'ble Gujarat High Court in Cadila Healthcare (supra) explains the scope of the expression ....