2016 (4) TMI 326

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.... of CETA 1985. They have availed cenvat credit for excise duty paid on inputs and capital goods and they have availed cenvat credit of service tax paid on input services. The appellants were issued with show cause notice dt. 4.7.2012 requiring them to reverse credit of Rs. 16,17,360/- availed by their Ennore unit. Assessee has stated that these services are input services as per definition in rule 2(l) of CCR. Hence appellants are eligible to avail credit of the services. The Additional Commissioner disallowed the credit on inputs services to the extent of Rs. 27,495 as per chart given under and also imposed penalty of Rs. 2000/- :- ISD Inv.No. RG 23A Part I Sl.No. Date Input Service Provider Description of input Service V....

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.... and all the parts of the definition should be satisfied so as that input services becomes an eligible input. 5. Heard both sides. 6. On going through the records, I find that expenses incurred on services at the factory premises of the appellant-assessee are eligible as input service. It has also been upheld by Hon'ble High Court of Madras in CCE& ST LTU Chennai Vs Rane TRW Steering Systems Ltd. (supra). Similarly policy taken to provide medical coverage to the employees is also an eligible input service under rule 2 (l) of CCR 2004. This issue is also discussed by Hon'ble High Court of Karnataka in CCE ITU Bangalore Vs Micro Labs Ltd. (supra) and Hon'ble High Court has held that assessees are entitled to avail cenvat cre....