Tax implication on tution fees paid by employer to employee

Dear all,

I have two Part to this Question.

companies perspective and empolyees perspective

can an company pay the tution fees for post gradute course of employee/family member(relative to the owner) and claim income tax benifit?? plus can service tax paid on tution fees, be taken as cenvat credit in this case??

And What would be tax implication of this in the hands of employee or the family member. ( specially in case the money is being routed through education loan from bank in the name of employee or family member and company keeps on remeburing of the emi )??

Thanks for your time and sharing the knowledge.