Custom, Excise & Service Tax Tribunal
Cce, Madurai vs M/S. Tvs Srichakra Ltd on 10 April, 2014
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
E/677/2009
(Arising out of Order-in-Appeal No. 302/2009 dated 8.9.2009 passed by the Commissioner of Central Excise (Appeals), Madurai)
For approval and signature:
Honble Shri P.K. Das, Judicial Member
1. Whether Press Reporters may be allowed to see the Order for Publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether the Members wish to see the fair copy of the Order?
4. Whether Order is to be circulated to the Departmental authorities?
CCE, Madurai Appellant
Vs.
M/s. TVS Srichakra Ltd. Respondent
Appearance Shri K.P. Muralidharan, Supdt. (AR), for the Appellant Shri S. Muthuvenkataraman, Advocate for the Respondent CORAM Honble Shri P.K. Das, Judicial Member Date of Hearing: 10.04.2014 Date of Decision: 10.04.2014 Final Order No. 40260/2014 Revenue filed this appeal against the order of the Commissioner (Appeals).
2. Heard both sides and perused the records.
3. The respondent is engaged in the manufacture of tyres and flaps classifiable under Chapter 40 of the CETA, 1985. The issue involved in this case is whether the respondents are eligible to avail input service credit for the service tax paid on services provided by the outdoor caterer in the factory premises and on life insurance policies to provide coverage on occupational risk at their unit by paying premiums on the policies in favour of the factory workers. The original authority dropped the demand. Revenue filed appeal before the Commissioner (Appeals). By the impugned order, the Commissioner (Appeals) rejected the appeal filed by Revenue. Hence, Revenue has filed this appeal before the Tribunal.
4. I find that the Tribunal in the case of Millipore India Ltd. Vs. CCE, Bangalore II 2009 (236) ELT 145 allowed the credit on service tax paid on medical and insurance policies. The decision of the Tribunal was upheld by the Honble Karnataka High Court as reported in CCE Vs. Millipore India Pvt. Ltd. 2012 (26) STR 514 (Kar.).
5. Regarding the denial of credit of service tax paid on outdoor caterer, it is seen that the Honble Bombay High Court in the case of CCE, Nagpur Vs. Ultratech Cement Ltd. 2010 (260) ELT 369 (Bom.) held that input service credit on outdoor caterer service is eligible subject to the extent of cost of food recovered from the employees/ workers is reversed.
6. In view of the above discussion, I find that the respondent is eligible to avail credit on the life insurance policies. In respect of outdoor caterer, the respondent is liable to reverse the credit to the extent of the cost of food, if any, recovered from the employees. The appeal filed by the Revenue is disposed of in the above terms.
(Dictated and pronounced in open court) (P.K. Das) Judicial Member Rex 3