Custom, Excise & Service Tax Tribunal
M/S.Ranbaxy Laboratories Ltd vs Cce, Indore on 14 October, 2016
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, NEW DELHI, PRINCIPAL BENCH NEW DELHI
Date of Hearing/Decision:14.10.2016
Excise Appeal No.288/2012-EX(SM)
[Arising out of order-in-appeal no.IND/CEX/000/APP/463/2011 dated 30.11.2011 passed by the Commissioner (Appeals), Customs & Central Excise, Indore].
M/s.Ranbaxy Laboratories Ltd. Appellants
Vs.
CCE, Indore Respondent
Appearance:
Rep. by Shri Rahul Tangri, Advocate with Sh.Shashwat, Advocate for the appellants.
Rep. by Shri Dharam Singh, AR for the respondent. Coram: Honble Shri B. Ravichandran, Member (Technical) Final Order No. 54110/2016 /14.10.2016 Per B. Ravichandran:
The short issue involved in the present appeal is denial of cenvat credit of Rs.47,81,532/- availed by the appellants on the service tax paid on Group Medi-Claim Policy. The Original Authority denied the credit on the ground that the same is not covered under input service in terms of Rule 2 l of Cenvat Credit Rules, 2004.The Appellate Authority observed that the Group Mediclaim Policy is not relating to the business of the appellant and cannot be considered as services used in or in relation to the activities relating to business. On appeal, the Commissioner (Appeals) vide the impugned order upheld the Original order.
2. Ld. Counsel for the appellants submitted that the availability of credit on Group Medicalim Insurance Policy has been settled by the various judicial pronouncements. He submitted a list of cases in their favour.
3. Ld. AR reiterated the findings of the lower authorities.
4. Heard both the sides and perused the appeal records.
5. The denial of credit is on the ground that the insurance service is not specifically covered under input service under Rule 2 l of Cenvat Credit Rules, 2004. It is seen that in various judicial pronouncements by the Tribunal and High Courts, it has been held that during the relevant period, the assessees are eligible for credit of service tax paid for Group Mediclaim Insurance. The Tribunal relying on the decisions of the Honble Karnataka High Court in the case of CCE, Bangalore-II Vs. Millipore India Ltd .- 2012 (26) STR 514 (Kar.) and Stanzen Toyotetsu India Pvt. Ltd. 2011 (23) STR 444 (Kar.) held that the assessee is eligible for cenvat credit and refund thereafter. REfence can also be made to the various other decisions, including final order of the Tribunal in A/54139-54140/2015-SM(BR) dated 9.7.2015 in the case of Hindustan Zinc Ltd. and BNY Mellon International Operations India Pvt. Ltd. 2016-TIOL-1851-CESTAT-MUM.
6. In view of the above settled position, the impugned order is set aside and the appeal is allowed.
[ order dictated and pronounced in open court] ( B. Ravichandran ) Member (Technical) Ckp.
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