TMI Blog2014 (8) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... lity on the output service of “Insurance Auxiliary Service - there is no one to one correlation required between the input service and the output service under the CENVAT Credit Scheme and, therefore, the demands confirmed against the appellants for recovery of CENVAT Credit availed by them for discharging Service Tax liability on Insurance Auxiliary Service is clearly unsustainable and accordingly, we set aside the same - Following decision of M/s TATA AIG LIFE INSURANCE CO LTD and others Versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI & THANE-II [2014 (4) TMI 637 - CESTAT MUMBAI] - Decided against Revenue. - ST/93/08-Mum, ST/25/12-Mum. & ST/77, 78/08-Mum. - - - Dated:- 19-6-2014 - S S Kang And P S Pruthi, JJ. For the Appellant : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice, hence cannot avail and utilize the credit of service tax paid on taxable service to be used in or in relation to providing Insurance Auxiliary Service. 4. We find that this issue is now settled by the Tribunal decision in the case of Tata AIG Life Insurance Co. Ltd. Vs. CCE reported in 2014-TIOL-487-CESTAT-MUM. Tribunal held as under: 5.1 Prior to 19.4.2006, Rules 2(p), (q) and (r) read as follows:- p) output service means any taxable service, provided by the provider of taxable service, to a customer, client, subscriber, policy holder or any other person, as the case may be, and the expressions provider' and provided' shall be construed accordingly. Explanation For removal of doubt it is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Insurance Auxiliary Service, the liability to pay Service Tax is on the service recipient in terms of Rule 2 (1)(d)(iii) of the Service Tax Rules, 1994, the appellants are the providers of the output service as defined in law. Therefore, the appellants are entitled to avail CENVAT Credit on the input services used for providing the output service. Consequently, there is no bar in utilization of CENVAT Credit for payment of Service Tax on Insurance Auxiliary Service by the appellants. This is the settled legal position as can be seen from the decisions of the Hon'ble Punjab Haryana High Court and Hon'ble Delhi High Court in the case of Nahar Industrial Enterprises Ltd., Nahar Spinning Mills and Auro Spinning Mills Hero Hond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to utilize CENVAT Credit of the Service Tax paid on various input services for discharge of the Service Tax liability on the output service of Insurance Auxiliary Service . 5.4 We also note that there is no one to one correlation required between the input service and the output service under the CENVAT Credit Scheme and, therefore, the demands confirmed against the appellants for recovery of CENVAT Credit availed by them for discharging Service Tax liability on Insurance Auxiliary Service is clearly unsustainable and accordingly, we set aside the same . 6. We find that the ratio of the above decision is fully applicable to the facts of the present case. Therefore, respectfully following the above decision of the Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
