Case Law Details
Indian Overseas Bank Vs Commissioner of Central Excise & Service Tax (CESTAT Chennai)
The issue that arises for our consideration is whether the credit availed by the appellant-bank on the Service Tax paid on the basis of the premium paid to DICGC for insuring deposits is eligible for CENVAT Credit or not.
The said issue was considered by the Larger Bench of the Tribunal in the case of M/s. South Indian Bank (supra) wherein it was held that insurance service provided by DICGC to the banks is an input service and the credit of Service Tax is eligible. In the appellant’s own case (supra), the Tribunal, for a different period, has followed the decision of the Larger Bench and held that the credit is eligible.
Following these decisions, we have no hesitation to hold that the credit of the Service Tax paid on the basis of premium paid to DICGC is eligible.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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