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TMI Blog2023 (10) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... Auxiliary Services & Renting of Immovable Property Services. They could not finalize their tax liability before the due dates on account of the data not reaching them on time from their large number of branches. They made a request to the Department for provisional assessment for the year 2009-2010. The said request was granted on 10.03.2009. Thereafter, while finalization of the provisional assessment, the original adjudicating authority disallowed CENVAT of Service Tax paid under the category of 'Service or Repair of Motor Vehicles' carried out by Authorized Service Station (ASS) of motor vehicle manufacturers and service provided by the Salvager under Port services for refloating a grounded dredger. The reason for denying the credit was that the invoices on which the credit has taken by assessee mentioned the name of clients of the assesse (vehicle owner, ship dredger owner, etc.). Against such order of finalizing the assessment and disallowing the credit, the assessee filed an appeal before the Commissioner (Appeals) and vide Order-in-Appeal No. 78/2012, the Commissioner (Appeals) held that the assessee is eligible for credit. 2.2 The assessee on 14.02.2013 filed a refund cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction viz., the Buyer / Owner of the vehicle, the dealer / the Service Provider of the vehicle and the assessee (The Insurance Company). This is as far as new vehicles are concerned. ii. For renewal / old vehicles, the owner would approach the assessee directly. iii. In case the customer vehicle gets damaged or needs a repair which is duly covered by an insurance policy, the customer would approach the Authorized Service Station and deposit the vehicle. iv. The Authorized Service Station would scrutinize the extent of damage / repair required to be done and repair estimate and hands it over to the customer who in turn furnishes it to the assessee along with intimation claim / claim form. v. Based on the value of the repair estimate, the assessee would appoint a proper surveyor / surveyors to validate the process and obtains a survey report. vi. The surveyor report forms the basis for the settlement of the claim by the assessee. Only the surveyor would scrutinize the rough estimate form in the presence of the Authorized Service provider and the Authorized Service Station would identify the extent of the damage and the repairs required. The surveyor and authorize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceives the input service and uses it in providing taxable service and pays Service Tax. 3.4 It is submitted that the issue stand covered by the decision in the assessee's own case M/s. United India Insurance Co. Ltd. Vs. Commissioner of Central Excise and Service Tax, LTU, Chennai [2019 (27) GSTL 252 (Tri. - Chennai)]. The Ld. counsel prayed that the appeal may be allowed. 4. The Ld. Authorized Representative Shri Harendra Singh Pal reiterated the grounds of appeal. 5. Heard both sides. 6. The issue is the disallowance of credit alleging that the invoices bear the name of the vehicle owner / dredgers and is not in conformity of Rule 4A of Service Tax Rules, 1994. The very same issue was considered by the Tribunal in the assessee's own case M/s. United India Insurance Co. Ltd. (supra), the Tribunal held as under:- "6.1 The dispute is regarding the admissibility of Cenvat credit availed by the appellant on certain input services. Vehicle owners who have got their vehicles insured by the appellant, approach the ASS for carrying out the repairs. In cases where such repairs are covered by the insurance policies, the appellant pays for such repairs directly to the ASS (cashless se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e service, in other ways it is the buyer of the service". By following the above analogy, we come to the conclusion that the appellant becomes the recipient of the service of ASS even though the beneficiary remains the owner of the motor vehicle. 6.5 The appellant has also referred to the TRU Circular dated 26-2-2010, in which the following clarification has been given :- "2.2 A large number of health insurance schemes are being offered 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 context of healt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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