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2018 (10) TMI 1252 - AT - Service TaxCENVAT Credit - input services - re-insurance policies taken by them for making a cover for the insurance contract entered by them as an output service provider - Department has entertained a view that the insurance and re-insurance are two separate contracts and same are independent of each other - Held that:- So far as the availment of Cenvat Credit of the Service Tax paid by the appellant on the premium of the re-insurance taken by them for providing the insurance service to their customers - the matter is no longer res integra as it has already been decided by this Tribunal and Hon’ble High Court of Karnataka in case of Commissioner of Service Tax, Bangalore Vs PNB Metlife Insurance Co. Ltd. [2015 (5) TMI 68 - KARNATAKA HIGH COURT], where it was held that the transfer of a portion of the risk of the re-insurance has to be considered as having nexus with the output service, since the re-insurance is a statutory obligation and the same is co-terminus with the Insurance Policy - credit rightly availed. Demand of ₹ 37,83,124/- - excess paid Service Tax was utilized by them for payment of their Service Tax liability for the month of November, 2007 and during the month of January and March, 2008 - Held that:- If any excess payment of service tax has been made by the appellant, they are certainly entitled to make adjustment of same in their liability of subsequent months as per the provisions of Service Tax Rules, however, this only needs meticulous verification of challans / payments and ST -3 returns at field level - the Commissioner has not applied his mind on this and routinely confirmed the demand of service tax without getting the claim of the appellant verified - the matter remanded to original adjudicating authority only with regard to the second demand of ₹ 37,83,124/- for necessary verification of the claim of the appellant and accordingly decided the same on the merits. Appeal allowed in part and part matter on remand.
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