2025 (8) TMI 803

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....sal for recovery of Rs. 88,53,123 taken as CENVAT credit under rule 14 of CENVAT Credit Rules, 2004, along with appropriate interest under section 75 of Finance Act, 1994, while imposing penalty of like amount under rule 15 of CENVAT Credit Rules, 2004, rests on binding precedent insofar as eligibility of the three 'input services' is concerned. 2. It is seen from the records that the demand pertains to 2007-08 to 2011-12 during which appellant had taken credit of tax component in the premium paid for policies insuring employees against accident at workplace, insuring employees and families through group 'mediclaim' and insuring of vehicles. Relying on the broad principles for segregation of taxable services utilized in connection with t....

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....loyees/staffs who are not covered by the ESI has been disallowed. This has been disallowed on the ground that the same cannot be considered as input service in terms of the activities relating to business. (ii) Learned Authorised Representative for the company submits that in respect of category of employees and officials who are not covered by the ESI, they are required to make compensation in the event of illness/accident. As a prudent business proposition, they incurred expenses by taking mediclaim insurance and personal accident insurance and these expenditures are clearly in the course of business activities covering possible risks involved which may result in payment of huge sum. Such an approach is part of business activitie....

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....ing authority has not rendered any finding on the ineligibility of credit of Rs. 1,34,199 taken on insurance of vehicles, there is nothing on record to suggest that the vehicles had been deployed for activities other than the business activities of the appellant. Moreover, vehicles are statutorily mandated to be insured and denial of the credit thereof is not in consonance with the intent of CENVAT Credit Rules, 2004 6. On the issue of group 'mediclaim' policy, which was, admittedly, extended to the families of employees, the division bench had referred for constitution of Larger Bench of the Tribunal and which, by interim order [no. 05/2024 dated 18th March 2024] in the present dispute before us, held that '49. It has been foun....