2018 (2) TMI 1486

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....espondent ORDER In this appeal of M/s Positive Packaging Industries Ltd against order-in-appeal no.PK/38/RGD/2016 dated 31st August 2016 of Commissioner of Central Excise (Appeals - II), Mumbai, the issue for determination is the finding that CENVAT credit of Rs. 2,94,955 availed between June 2014 and March 2015 on premium paid on insurance policies were ineligible. Besides confirming this a....

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....ive. 4. The decision of the Hon'ble High Court in re Micro Labs did examine the eligibility of tax paid the premium for availment of credit and held "3. The question for consideration therefore is as to whether the assessees are liable to avail Cenvat credit towards payment of service tax on the Group Insurance Health policy. An identical question came up for consideration before the Divisio....

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.... under the workmen's compensation Act he has to obtain the Insurance Policy covering the risk of the employees. The employee State Insurance Act takes care of the health of the employees also and casts an obligation on the employer to provide insurance services. Under these circumstances, this Group Insurance Health Policy though is also a welfare measure is an obligation which is cast under the S....

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.... are not entitled to the benefit of CENVAT credit. In fact, Rule 3 of the Cenvat Rules, 2004, specifically provides that the manufacturer of final products shall be allowed to take credit. The service tax is leviable under Section 66 of the Finance Act and paid on any input service received by the manufacturer of a final product. Therefore under the scheme of the Cenvat Credit Rules, 2004, the ser....