I was told from a player on our server that the Helm of Excellence doesn't only block headshots. If the grenade is quite near to a person, or the person steps directly on the grenade and looks down (like holding the head towards the nade) wearing a Helm of Excellence the damage from the grenade is absorbed/blocked.
I didn't test or reproduce it myself but I trust in that player.
I can make a replay, if necessary.
(It sounds like a cool idea for a new item though

"Flaming Kevlar", absorbing grenade damage, counteritem for the "Flaming Gloves of Warmth" and Orcish Critnades)
Regards