Order Date: 23 August 2022

Facts-

• The Appellant, Diamond Beverages Private Limited has filed this present Appeal against the Order-in-Appeal passed by the Commissioner Of CGST & CX by which Cenvat credit with respect to the Service Tax paid on the premium of the Group Mediclaim Policy for its employees was disallowed.
• The Ld. Commissioner (Appeals) had further remanded the matter to the Ld. Adjudicating authority for determination of penalty imposed on the Appellant vide the adjudication order.

Issue-

• Whether the Cenvat credit of Service tax paid on the premium of the Group Mediclaim Policy for its employees are eligible for Cenvat credit as per Rule 2(l) of the Cenvat credit Rules, 2004?

Order-

• The Tribunal observed that the above policy has been taken by the Appellant for its factory employees and that the Appellant is registered under the Employees State Insurance Act, 1948 as well as the Factories Act, 1948, which mandates such policy to be obtained by the Appellant.
• The Tribunal relied upon the decision of the Tribunal in the case of HINDALCO INDUSTRIES LTD. Versus COMMISSIONER OF C. EX. & S.T., NAGPUR 2019 (25) G.S.T.L. 442 (Tri. - Mumbai) and held that the Cenvat credit on group Mediclaim policy cannot be disallowed.
• Further, it has been intimated by the Appellant that the penalty proceeding has also been dropped by the Ld. Adjudicating authority vide De novo Order.
• Thus, the Appeal filed by the Appellant is allowed with consequential relief.