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2016 (12) TMI 1128 - AT - Service TaxGeneral Insurance Service - re-insurance - service provided by the appellant as co-insurer along with lead insurer to the insured, whether attracts service tax or not? - Held that: - circular has been issued by the Ld. Commissioner of Service Tax-I, Mumbai vide F.No.ST/HQ/EA-2000/GR.01/TATA/23/2011/2308 dated 10.09.2013 wherein the service of co-insurance has been accepted and clarified that the said business is different from the insurance. There is no separate service rendered by the lead insurer to the co-insurer or otherwise relating to insurance business, except for certain administrative matters. The only service rendered is between the co-insurers and the policy holder. For this service, the insurance premium is received in full by the lead insurer and after payment of service tax on the entire amount, the rest is distributed among the co-insurer on the basis of their agreed shares - the entire insurance premium has already suffered tax at the time of its receipt in the hands of the lead insurer - demand set aside - penalty set aside - appeal allowed - decided in favor of appellant.
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