TMI Blog2023 (1) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... SHRI S. CHOCKALINGAM VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, CHENNAI [ 2022 (6) TMI 539 - CESTAT CHENNAI ] followed the decision rendered by the Larger Bench in M/S. SOUTH INDIAN BANK VERSUS THE COMMISSIONER OF CUSTOMS, CENTRAL EXCISE AND SERVICE TAX-CALICUT [ 2020 (6) TMI 278 - CESTAT BANGALORE] and held that credit of the service tax paid on premium paid to DICGC is eligibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue that arises for consideration is as to whether the banks can avail credit of the service tax paid by the banks for the service provided by the Deposit Insurance Corporation. 3. The Principal Commissioner has found that the deposit insurance service does not have any relationship with the activity of the bank, other than the activity of acceptance of deposits. The relevant portion of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits insurance service of DICGC has nexus only with the activity of acceptance of deposits, the same cannot be treated as used for providing a taxable output service. Hence, it does not qualify as an 'input service' in terms of Rule 2(1) of CCR, 2004. 4. A Larger Bench of the Tribunal in South Indian Bank vs Commissioner of Customs, Central Excise Service Tax, Calicut [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in Indian Overseas Bank vs Commissioner of Central Excise Service Tax [ Service Tax Appeal No. 40702 of 2016 decided on June 10, 2022] followed the decision rendered by the Larger Bench in South Indian Bank and held that credit of the service tax paid on premium paid to DICGC is eligible. 7. The same view was taken by a Division Bench of the Tribunal in Tamil Nadu State A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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