2016 (4) TMI 370

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.... : Shri S. Mohan, AC (AR) ORDER The appellant M/s. Murugappa Morgan Thermal Ceramics Ltd., are manufacturers of Ceramic Fibre Bulk, Blanket, Mastic Cement, Ceramic Fibre products etc., and registered both under Central Excise and Service Tax. A Show Cause Notice dated 22.10.2009 was issued to the appellant since they have availed credit of Rs. 96,629/- being the service tax paid on Health Insur....

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....est and penalty. Being aggrieved, the appellant is in appeal before this Tribunal. 2. The Ld. Counsel Shri M. Kannan, Advocate, appearing on behalf of the appellant Company reiterates the ground of appeal and submits that the accidental death or even sickness of employees cause disruption in business activities and can also involve unforeseen expenditure to be met by the appellant. To protect the....

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....tention while taking the credit and therefore the penalty imposed may be set aside. In support of his arguments, he relies on the decision of the Hon'ble High Court of Karnataka in the case of CCE, Bangalore-III Vs. Stanzen Toyotetsu India (P) Ltd. Reported in 2011 (23) STR 444 (Kar.). He further relies on the decision of this Tribunal in the case of Sundaram Brake Linings Vs. CCE, Chennai-II - 20....

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....the business risk and it cannot be considered that such insurance is not relation to the manufacturing activity. Even in the case of health insurance of the 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 disruption of manufacturing lines and the employer may take insurance for arranging ....