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TMI Blog2024 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... llants were providing this service, but they were not discharging the Service Tax liability. On this count the demand was quantified at Rs.62,06,774/- for the period 2004-2005 to 2007-08. The show cause notice also alleged that the appellants have taken Cenvat Credit irregularly on the basis of documents which are not prescribed document under Rule 9(1) of Cenvat Credit Rules, 2004. On this count, the demand was quantified at Rs.4,10,25,659/- After due process, the Adjudicating authority confirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. Shri J.P. Khaitan, Ld. Sr .Counsel appearing on behalf of the Appellant submits that the Revenue is in gross error in terming the service as "Insurance Auxiliary Service". He takes us through the definition of "Insurance Auxiliary Service" as given under Section 65 of the Finance Act, 1994. "SECTION 65. Definitions - In this Chapter, unless the context otherwise requires, - ..................... (54) "insurance agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938); (55) "insurance auxiliary service" means any service provided by an actuary, an intermediary or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under the IRDA Act, the person can provide 'insurance auxiliary service'. In the present case the Appellant has not obtained any such licence. Even in the show cause notice there is no allegation that the Appellant has obtained the licence and therefore acting as an 'insurance intermediary' providing the service of 'insurance auxiliary service'. Ld. Sr. Counsel submits that in the present case, the Appellant was issued a letter dated 30.06.1999 by National Insurance Company wherein it has been clearly stated that "Medicare Services Club" is a "registered services club" and that "Medicare Services Group" has "Insurable interest in its members for their welfare and benefit through medical insurance". This letter also states that "the payment of the members will be paid by Medicare Services Club and claims naturally will be paid through them also" (Page 20 of Volume-1 of Appeal compilation). 6. This is a case where group insurance is obtained by the Appellant for all its club Members. The Ld. Sr. Counsel also takes us through to the letter submitted by them to the Superintendent Audit Service Tax on 04.08.2008 clarifying the types of facilities being given by the club to their me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80 etc. to show that the insurance companies have issued the invoices showing the premium amount and the Service Tax collected by them. He submits that Cenvat Credit has been taken on such invoices. Therefore, he submits that there is no justification in denying the Cenvat credit of Rs.4,10,25,659/-. Accordingly, he prays that the impugned order may be set aside and the Appeal may be allowed on merits. 8. He further submits that the show cause notice issued on 28.07.2009 for the alleged non-payment of Service Tax during the period 2004-05 to 2007-08 and the alleged irregular Cenvat Credit taken during the period April 2005 to March 2008 is hit by time bar provisions. He submits that the Appellant has taken the registration w.e.f. 16.05.2005 and they have been paying the Service Tax on the membership fee collected from the members. All the Cenvat Credit taken by them in respect of input services have also been shown in the ST-3 Returns. The complete details of membership fee collected, insurance premium paid to the insurance companies, Service Tax paid to the insurance companies, Service Tax received from the members etc. are all properly recorded in the Profit and Loss accounts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the effect that the Appellant has obtained any licence from the IRDA authorities to act as intermediary or agent for the Insurance companies. It is also noticed that the company is purchasing Insurance policy by paying certain amount and selling the same to the individual members at a particular rate. For such an activity, the Appellant may be keeping some margin for themselves for providing some other allied services to the members. From the letter dated 30.06.1999 issued by National Insurance Company it gets clarified that the Appellant is issued the Insurance policy and the settlement of any claim for their members would be the responsibility of the Appellant only. In case of a claim, the members file their claim with the club, who in turn takes up the matter with the insurance company and gets the claim settled for the members. In this case it is a straight case of the appellant acting independently by purchasing the policy and selling the policy. There is nothing to indicate from the show cause notice that the Appellant has received any commission from the insurance company as an intermediary or as an agent. In case of 'insurance auxiliary service', the person acting as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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