2019 (12) TMI 181

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....ng Cost, Event Management and Creche Maintenance and Staff Welfare and rejected the cenvat credit on (a) Group Medical Insurance amounting to Rs. 33,97,796/- (Rupees Thirty Three Lakhs Ninety Seven Thousand Seven Hundred and Ninety Six only) (b) Staff Transport facility Rs. 2,25,853/- (Rupees Two Lakhs Twenty Five Thousand Eight Hundred and Fifty Three only) and (c) Lunch and Banquet Rs. 74,582/- (Rupees Seventy Four Thousand Five Hundred and Eighty Two only). The appellants have filed the present appeal against the rejection of cenvat credit on these three services i.e. Group Medical Insurance Service, Staff Transportation facility, Lunch & Banquet/Lunch Coupon. 2. Briefly the facts of the present case are that the appellant (formerly k....

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....mand of Rs. 36,98,231/- (Rupees Thirty Six Lakhs Ninety Eight Thousand Two Hundred and Thirty One only) and dropped the demand amounting to Rs. 5,82,061/- (Rupees Five Lakhs Eighty Two Thousand and Sixty One only). Demand for interest under Section 75 and penalty of Rs. 3,60,000/- (Rupees Three Lakhs and Sixty Thousand only) was also confirmed by the Commissioner (Appeals). Hence, the present appeal. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order denying the cenvat credit on Group Medical Insurance, Catering Service, Transportation of Employees are not sustainable in law because the same has been passed without properly appreciating the definition of 'input ser....

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....g Service is concerned, the Larger Bench of this Tribunal in the case of Wipro Ltd. Vs. CCE, Bangalore reported in 2018 (363) E.L.T. 1111 after considering the exclusion clause provided in Clause (c) w.e.f. 01.04.2011 has held that Outdoor Catering Service is not eligible for 'input service credit' post amendment dated 01.04.2011. As far as Group Medical Service is concerned, the learned AR submitted that this Tribunal in the case of Bharat Fritz Werner Ltd. vide Final Order dated 20450/2019 dated 31.05.2019 has held that Group Medical Insurance has also been specifically excluded from the definition of 'input service' w.e.f 01.04.2011. He also submitted that Transportation of Employees is for the personal consumption of employees and has n....

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....nder the definition of 'input service' as it is directly related to the productivity of the employees working with the appellant and this facility is only from the factory to the residence of the employees and back which in my opinion falls in the definition of 'input service' and the exclusion clause is not applicable as far as this service is concerned. Therefore, by relying upon the ratios of the Reliance Industries cited supra, I hold that the appellants are entitled to cenvat credit of service tax on this service. Further I find that in the appellant's own case for the earlier period, this Tribunal vide its Final Order No. 20863/2019 dated 04/10/2019 pertaining to the same input services viz. Group Medical Insurance, Staff Transportati....