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TMI Blog2025 (1) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... g decisions of the Division Benches of the Tribunal on the issue as to whether a banking company would be entitled to avail CENVAT Credit of service tax paid to Deposit Insurance And Credit Guarantee Corporation for insuring deposits, accordingly, a Larger Bench was constituted in terms of the Division Bench's order dated 23.05.2019 while hearing this appeal. The Larger Bench answered the reference by an order dated 20.03.2020 in the following manner: "The insurance service provided by the Deposit Insurance Corporation to the banks is an "input service" and CENVAT credit of service tax paid for this service received by the banks from the Deposit Insurance Corporation can be availed by the banks for rendering "output services"." 2. While ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut would act contrary to the intended expressions in Section 66D. 14. It can be construed from a plain reading of section 66D that the negative list is compiled of the services stated therein and is relied on to bring the assessee within the negative list is clause-(n) i.e. services by way of extending deposits, loans. advances etc. in so far as the consideration is represented by way of interest or discount. The expression used in clause-(n) begins with the words 'extending deposits, loans or advances', and such activity is represented by way of interest or deposit of money. The determining word in the clause is 'extending deposits, loans or advances etc. Extending deposits' literally understood is the deposits, loans et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Hence C.E. Appeal No.1 of 2021 is dismissed. For the view taken in the preceding paras, the questions raised in the appeals are answered against the revenue and in favour of the assessee. Hence the appeals stand dismissed." (emphasis supplied) 5. The reference made to the Larger Bench has, accordingly, to be answered in the same terms as was answered by the Larger Bench of the Tribunal on 20.03.2020. The reference is accordingly answered in the following manner: "The insurance service provided by the Deposit Insurance Corporation to the banks is an "input service" and CENVAT credit of service tax paid for this service received by the banks from the Deposit Insurance Corporation can be availed by the banks for rendering "output ..... X X X X Extracts X X X X X X X X Extracts X X X X
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