TMI Blog2018 (9) TMI 1584X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of the repair charges. 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. Appeal allowed - Credit allowed - decided in favor of appellant. - Appeal Nos. ST/00451/2011 & ST/00520/2012 - Final Order No. 42157-42158/2018 - Dated:- 12-7-2018 - Shri Madhu Mohan Damodhar, Member (Technical) And Shri P Dinesha, Member (Judicial) Shri. R. Raghavan, Advocate for the Appellant Smt. P. Hemavathi, Commissioner (AR) for the Respondent ORDER Per Bench, These appeals arise against the orders of the Commissioner of Central Excise and Service Tax, Large Tax Payer Unit, Chennai in Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above credit for the purpose of payment of service tax on the Insurance Services provided by them. Credit presently under dispute was availed on the strength of invoices issued by the Authorized Service Station to the insured, on which the Appellant s name would be written/endorsed or the rubber stamp of the Appellant company would be affixed on it. 3.2 Ld. Advocate also submitted during the course of hearing that the issue involved in the above cases has already been considered and decided by this very Bench of the Tribunal, in the case of M/s. United India Insurance Co. Ltd. Vs. C.C.E. S.T., LTU, Chennai reported in 2018 (6) T.M.I. 200 CESTAT Chennai in favour of the assessee, the relevant portion of which is extracted h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the insurance companies under which charges for hospitalization, surgery, post-surgical nursing etc. are generally paid by the insurance company. Such insurance policies, which fall under the category of general insurance service, are already taxable. Under general insurance service, an insurance company is a service provider to its clients. Under the proposed new service, tax is also being imposed on the medical charges paid by the insurance companies to the hospitals on behalf of a business entity for its employees. As such, the insurance company would be the service receiver and the tax paid by the hospital would be available to the insurance companies as credit. Even though the above clarification has been given in the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the above discussions, we set aside the impugned order and allow the appeal. 4. The arguments of Ld. DR, Smt. P. Hemavathi, Commissioner, are summarized below: The insured vehicles are not owned by the Appellant (the vehicles belong to the insured Policy holder) and the services of repair were rendered to the vehicle owner, and the Appellant is not the service recipient. Therefore, the Appellant is not eligible to avail credit in terms of Rule 2(l) of the Credit Rules, The invoices are not in the name of the Appellant. Therefore, Rule 9 is not satisfied, The credit was availed on documents addressed to the insured vehicle owner and not to the Appellant, there is a possibility that the insured vehicle owner may also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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