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TMI Blog2018 (7) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... y issue was addressed by this CESTAT Chennai in the case of United India Insurance Co. Ltd. Vs CCE & ST LTU, Chennai vide Final Order No.41708/2018 dt. 1.6.2018 [2018 (6) TMI 200-CESTAT Chennai] wherein it was held as under: "6.1 The dispute is regarding the admissibility of Cenvat credit availed by the appellant on certain input services. Vehicle owners who have got their vehicles insured by the appellant, approach the ASS for carrying out the repairs. In cases where such repairs are covered by the insurance policies, the appellant pays for such repairs directly to the ASS (cashless settlement) and in other cases reimburses the vehicle owners for such repairs in full or in part. Such payments have been made by the appellant only as 6 par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see any other way by which the vehicle insurance service can be delivered to the customer. In this scenario, we are of the view that the service tax paid on the bill of the ASS is to be considered as falling within the definition of the input service which is used for providing the output service of the vehicle insurance. 6.4 The appellant has relied on the decision of the Tribunal in the Paul Merchants case (supra). We have gone through the said decision in which the Tribunal has made a distinction between the beneficiary of a service and the recipient of the service. The Tribunal observed that "the service recipient is the one who is obliged to pay for the services to the service provider and whose need is satisfied by the provision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso raised the issue that the invoices issued by the ASS which is the document based on which the appellant has availed the Cenvat credit, is invariably in favour of the owner of the vehicle and is not in favour of the appellant. Hence, Cenvat credit cannot be allowed to the appellants. As discussed above, we have held that the above service is eligible to be considered as an input service for the appellant. In the peculiar facts and circumstances of the case, we appreciate that the invoices will be issued by the ASS only in favour of the vehicle owners who took the vehicle to them for repair. But it is a fact that the insurance claims will be admitted by the appellant only after proper survey and further from the record it is seen that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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