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2018 (10) TMI 563 - AT - Service TaxCENVAT Credit - input services - insurance services (errors and omission policy taken by the appellant for indemnifying the errors / omissions or defects in the software products supplied by them) - It appeared to the department that general insurance / insurance auxiliary services are not covered within the definition of input service and therefore the appellants are not eligible for the credit - Held that:- In the case of M/s. Rane brake Lining Ltd. Vs. Commissioner of Central Excise [2018 (7) TMI 611 - CESTAT CHENNAI], the Tribunal has allowed credit on product liability insurance - The very same analogy can be applied for the software products which are supplied by the appellant. Further on analyzing the definition of input services, it can be seen that only those type of insurance services which fall under the category of life insurance, health insurance etc. which are availed for personal consumption are excluded from the ambit of the definition - These policies which are for covering the product liability in case of defect to the products supplied would definitely come within the inclusive part of the definition - credit allowed. CENVAT Credit - transit insurance policy - Held that:- The storage services are eligible only upto place of removal. So also outward transportation service is eligible only upto the place of removal. The inclusive part of the definition does not qualify the list of services mentioned therein except storage and outward transportation with the words “upto the place of removal” - the transit insurance policy which is availed by the appellant for moving the goods to the site where the output services are to be provided are also eligible for credit - credit allowed. Appeal allowed - decided in favor of appellant.
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