2025 (6) TMI 1009

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....rein after, referred to, as 'the impugned order') passed by the Commissioner (Appeals-III), CGST and CX, Mumbai. 2.1 Brief facts of the case, leading to this appeal, are summarized herein below: 2.2 The appellants herein, inter alia, are engaged in providing taxable services such as Construction of Residential Complex, Renting of Immovable property, Management or Business Consultant Service and Management, Maintenance or Repair Services etc., and for this purpose are registered with the jurisdictional Service Tax authorities holding Service Tax Registration No. AAACK2108GST002. 2.3 During the course of EA 2000 audit of the accounts maintained by the appellants for the period 2010-11 to 2013-14, the audit officers of the department ....

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....n 75 ibid and for imposition of penalty under Section 76 ibid, read with Rule 15(1) of CENVAT Credit Rules, 2004. 2.4 In adjudication of the SCN dated 11.04.2018, learned Deputy Commissioner had confirmed the demand of inadmissible CENVAT credit of Rs.23,25,621/- along with interest and imposed penalty of Rs.2,32,562/- under Section 76 of the Finance Act, 1994 vide Order-in-Original No.33/CGST-MW/DC/AG/KALPLTD/18-19 dated 23.102019. The appellants being aggrieved by the above order, had filed an appeal before the Commissioner (Appeals-III), Mumbai who in deciding the matter had upheld the original order and rejected the appeal filed by the appellants vide impugned order dated 20.01.2020. 2.5 Feeling aggrieved with the above impugned o....

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....ere is no exclusion in respect of service tax paid on the premium for general Insurance in the nature of Asset Insurance, laptop insurance, Product Contingent Liability Insurance, Transit Insurance, liability insurance, fire insurance etc., as these are necessary for carrying on business. Further, in the present case, appellants have stated that motor vehicle is a capital goods and thereby it will form part of the exception in the exclusion clause. He submitted that the Commissioner (Appeals) has not disputed the fact that the same is capital goods and used for the business purpose. Therefore, he claimed that the appellants are eligible for the CENVAT credit on the same. Furthermore, the disputed service pertains to Mediclaim, group gratuit....

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....tioned above. 4.2 Learned AR further submitted that in the career Section of the official website of the appellants, the tab "Perks of being at Kalpataru" clearly indicates that insurance provided by the appellants is for self and parents as one of the perquisites offered by them. Since this perquisite is being offered as an incentive to the prospective employees, he claimed that it can be concluded in no unambiguous terms that the same is used for the personal benefits of employees. Therefore, he stated that such services are specifically excluded from the benefit of CENVAT credit. Therefore, he justified the confirmation of the adjudged demands in the impugned order and stated that the appeal filed by the appellants is liable for rejec....

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....r contra learned AR on behalf of revenue by reiterating the findings recorded in the impugned order claims that no documents have been brought on record to prove that the services provided with respect to insurance services are mandated under any law and the disputed services are eligible as input service. 9. On examination of the Certificate of Insurance submitted by the learned Counsel for appellants, it transpires that the vehicle owned by the appellants and registered with the Regional Motor Vehicles Authority under their name and address giving credibility to the argument that such vehicles are used as capital goods by the appellants and therefore service tax on insurance premium paid should be treated as input service, which is not....