Whether cenvat credit of service tax paid on insurance policy taken as per Workmen’s Compensation Act is admissible?

PJ/Case law/2013-14/1889

Case:-C.C.E., SURAT-I VERSUS SHREE KHEDUT SAHAKARI KHAND UDYOG MANDLI LTD.

Citation:-213(31) S.T.R. 555 (Tri.-Ahmd.)

Brief Facts:-Revenue is in appeal against the impugned order, wherein it has been held that Service Tax paid on insurance premium towards insurance policy taken for workers compensation to be paid as per Workmen’s Compensation Act is admissible as Cenvat credit.

Nobody is present on behalf of the respondents.

Appellant Contentions:-The first objection is that the assessee had availed Cenvat credit on the strength of insurance policy which cannot be considered as a valid document for the purpose of availment of Cenvat credit. In fact, in the order issued by Commissioner, it has been clearly stated that the appellant had produced a copy of insurance policy/receipt and it is also stated that the insurance policy shows the premium as well as the amount of Service Tax paid.

The objection of the Revenue is that the insurance policy is not mentioned as an eligible document for availing Cenvat credit.

Respondent Contentions:-Nobody is present on behalf of the respondent.

Reasoning of Judgment:-We have considered the submissions from revenue and perused the records, we find that according to the Rule 4A of Service Tax Rule, 1994, in case where the provider of taxable service is a banking company or a financial institution or a non-banking financial company or any other body corporate or any other person providing service to any person in relation to banking & other financial service, an invoice, bill or as the case may be includes any document by whatever named called whether or not serially numbered whether or not containing address of the person receiving taxable service but containing other information in such document as required under this sub-rule.

Further, it is also to be taken note of the fact that the invoice bill or challan have been defined. The statute also provides what are the details which are required to be given. Therefore what is required to be seen is whether the document on the basis of which credit has been taken, show all the necessary details or not and where the document does not contain all the details, whether it is covered by the provisions which empowers proper officer to allow the credit even when there are deficiencies. Under these circumstances, Tribunal do not agree with the contention that on the basis of insurance policy which shows that amount of premium involved and Service Tax credit cannot be taken. It is also not correct to say that Cenvat credit is taken on the document not serially numbered since insurance policy always has a serial number.

Since the appeal has been filed only on this ground and Tribunal finds that it is a purely a technical ground and would not justify denial of credit, Tribunal uphold the impugned order and reject the appeal filed by the Revenue.

Decision:-Appeal rejected.

Comment:-The gist of this case is that Cenvat credit is admissible when the substantial conditions for availing the same have been satisfied irrespective of the fact that there are some technical lapses in the document on the basis of which the cenvat credit is taken.

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PJ/Case law/2013-14/1889

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