The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) headed by Justice Dilip Gupta (President), Ajay Sharma (Judicial Member) and C.J. Mathew (Technical Member) has held that Reliance Industries is qualified to avail CENVAT credit on the service tax paid on insurance premium for representatives who had selected for the “Voluntary Separation Scheme” (VSS).
The appellant has a manufacturing unit at Vadodara in which it manufactures petrochemical products such as for example LDPE, HDPE and related products, which are cleared on payment of duty by the central excise. The appellant avails protection plans for the medical expenses of its employees working in Vadodara. The appellant also takes a group health insurance for employees at the time of their retirement.