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TMI Blog2018 (9) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... it of the service tax paid on repairs and maintenance of the vehicles by the 'Authorized Service Stations' (ASS in short) in respect of those vehicles which were insured by the appellant. The Department took the view that such services do not form input services for the appellant in terms of the definition of input services as per Rule 2 (l) of the CCR, 2004. Accordingly, after issue of Show Cause Notice, vide Order-in-Original the adjudicating authority confirmed the demand of an amount of Rs. 3,02,19,114/- along with interest and penalties under Sections 76 & 78 of the Finance Act, 1994. Aggrieved by the said demand, appeal was filed before the Commissioner of Central Excise and Service Tax (Appeals), Large Tax Payer Unit, Chennai and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce 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 of the service, in other ways it is the buyer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 credit availed by them is restricted to the portio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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