TMI Blog2013 (7) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... ies on its business through insurance agents, and also through institutional agents like banks and insurance brokers (collectively called as intermediaries). 3. While selling insurance policies, there are instances, where the customer rejects the policy after its issue. In fact, IRDA Regulation provide that for a period prescribed, the person taking any insurance policy should be given this privilege of refusal of the policy, after reading the terms of the policy. In a situation, where insurance policy is cancelled, the appellant refunds the insurance premium along with service tax. As per the contention of the appellant, service tax amounts so refunded to persons taking policy (hereinafter referred to as insured) are being adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they had produced the names of insured who refused the policy, and also the bank statements showing refunds to the concerned persons etc to support their case. However, they found it difficult to trace from their records, the old vouchers sanctioning the refund because of the volume of records involved and since the records were relating to a past period. So they could not produce the vouchers before the adjudicating authority in the time frame given. However they have now traced all the relevant vouchers in respect of those 47 cases. He also submits that if the Revenue needs verification of more vouchers, they are willing facilitate the same on random sampling basis, based on the details of refunds already available with Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unding the amounts to the insured. The premium amounts and service tax are collected by debit to such accounts and refunds are credited to such accounts so that the work relating to receipt of cheques for each premium and writing and dispatch of cheques for each payment of refund can be avoided. The Counsel submits that this is the practice followed by the industry. On the one side Revenue considers debit to the account as receipt of premium and service tax but on the other hand does not want to recognize the credits made by appellant to the same accounts as refunds made to intermediaries and this the stand of Revenue is inherently contradictory. 9. The learned counsel submits that a similar matter was heard by this Tribunal in Appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be insisted that refund in this type of cases should be made by individual cheques to be issued to the intermediary. Revenue follows such methods while granting refunds to their assesses i.e., by credit in Cenvat Account, PLA or account maintained by importers with Customs Houses, or by cheques depending on the situation. 12. If Revenue has any doubt that the full amount is not being refunded and refund from government is claimed for more than the amount actually being refunded to the insured a clear case based on facts which will prove such malpractices should be bought out. Broadly, in our view the service tax Rules do not prescribe the method of doing any business or maintaining account. The approach of the authorities should facil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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