2018 (1) TMI 250

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.... This appeal has been filed by Hindustan Petroleum Corporation Ltd. against denial of credit of service tax on certain services. Interest and penalty have also been demanded. 2. Ld. Counsel for the appellants pointed out that credit has been denied on many services out of which they are contesting the following:- • Mediclaim/ Medical Insurance for employees • Grass cut....

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.... Section 38 of the ESIC Act and is a statutory requirement under Factory Act, to take care of unforeseen exigencies. It is argued that by taking family policy the employees have secure and safe feeling resulting in better work performance. Reliance has been placed on the decision in case of Reliance Industries Ltd. - 2016 (42) STR 384. Reliance has also been placed on the decision in case of Coca ....

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....n that the policies are not primarily for personal use or consumption. However, if there is a requirement under factories act to provide insurance as claimed by the appellants, then in respect of the factory employees, the credit of the medical premium cannot be denied. In these circumstances, the impugned order so far as it relates to rejection of premium on medical premium is set aside and matte....

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.... is directly related to the manufacturing activity. Clean atmosphere and safety are part and parcel of the manufacturing process. Moreover, Commissioner (Appeals) vide 10.06.2016 has already allowed the credit of this activity. In these circumstances, the appeal in so far as it relates to grass cutting and garden maintenance is allowed. 6. Credit has been denied on laying of PCC in pipeline. Th....