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2018 (5) TMI 1217 - AT - Service TaxChargeability of service tax - Policy Administration Charges for the period prior to 1st May, 2011 - Held that: - such levy have been introduced with effect from 1st May, 2011, when the definition in Section 65(105)(zx) was amended, and for the words "in relation to the risk cover in the life insurance" the words “by an insurer, including re-insurer carrying on life insurance business” where substituted. Thus evidently administrative charges also became taxable (being part of the insurance premium) with effect from 01/05/2011 - The period of dispute in the present appeal is July, 2010 to 31st March, 2011, which is prior to the amendment with effect from 01/05/2011 - administration charges are not subject to service tax prior to 01/05/2011 and accordingly the demand of ₹ 48,74,108/- set aside. Levy of service tax - notional 'fund management charges' - Held that: - no service tax can be demanded on such notional value which have not been collected and not charged by the service provider. Whether the appellants have provided exempted service, that is, the difference between the gross premium collected minus mortality charges, whether the same is in the nature of exempt service and is liable to reversal of input credit under the provisions of Rule, 6(1) of CCR, 2004? - Held that: - the value on which Revenue has demanded amount (by reversal) under Sub Rule (3) of Rule 6 of Cenvat Credit Rules, 2004, does not represent value of exempted services. Appeal disposed off.
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