TMI Blog2021 (1) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... President to resolve the issue by constituting a Larger Bench. The reason for such reference and doubting of the order rendered by the Larger Bench is that the decision rendered by the Hon ble Apex Court in Dilip Kumar Co. [ 2018 (7) TMI 1826 - SUPREME COURT ] was not considered by the Larger Bench and therefore the Larger Bench decision is per incuriam. When the issue has been decided by Larger Bench, judicial discipline binds us to follow the same - Further, the judgement in Dilip Kumar Co. [ 2018 (7) TMI 1826 - SUPREME COURT ] is with regard to interpretation of exemption notifications and would not be relevant for application to the issue under consideration which is the eligibility of Cenvat Credit. Application of judicial dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Bench on the opinion that the decision rendered in M/s. South Indian Bank (supra) is per incuriam and that it did not take into account the decision of the Apex Court in the case of Dilip Kumar Co. 2018-TIOL-302-SCCus-CB. Ld. Counsel argued that by the judicial discipline the Division Bench is bound by the decision of the Larger Bench in the case of M/s. South Indian Bank and therefore the said decision would apply to the facts of the case. 3. On behalf of the department, learned AR Shri Vikas Jhajharia, AC, appeared and argued the matter. He strongly relied on the decision rendered by the Division Bench in M/s. Bank of America (supra). It is argued by him that the Larger Bench of CESTAT while deciding the case in M/s. South ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of insurance premium on the outstanding deposits, banks will not be able to function or render any output service of banking and other financial services and the licence granted to the banks by the Reserve Bank of India can be cancelled. 53 . Thus, the service rendered by the Deposit Insurance Corporation to the banks would fall in the main part of the definition of input service , which is any service used by a provider of output 36 service for providing an output service. Once this service falls in the main part of the definition of input service , it would not be necessary to examine whether the service would be covered by the inclusive part of the definition. It has also been noted that the service is not excluded fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns filed by the banks with the Deposit Insurance Corporation for calculating the premium payable. The banks cannot avail credit of service tax on any amount of interest earned on extending of deposits. It is, therefore, not possible to accept the contention of the Department that accepting of deposits is covered under section 66 D(n) of the Finance Act. 6. The learned AR has relied upon the decision of CESTAT Bench at Mumbai in the case of M/s. Bank of America (supra). The very same issue has again been referred to the Hon ble President to resolve the issue by constituting a Larger Bench. The reason for such reference and doubting of the order rendered by the Larger Bench is that the decision rendered by the Hon ble Apex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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