CESTAT Quashes Service Tax Demand on grounds not covered or alleged in SCN

EID Parry (India) Ltd. Vs Commissioner of Central Tax Visakhapatnam (CESTAT Hyderabad) Introduction: In a recent case, EID Parry (India) Ltd. approached the CESTAT Hyderabad against a demand of service tax on the payment of insurance premium for a marine cargo policy. The issue revolved around the admissibility of Cenvat credit on the said premium. The CESTAT’s decision highlighted the lack of clarity in the show cause notice issued by the tax authorities. Analysis: The show cause notice issued to the appellant did not provide detailed grounds for disallowing the Cenvat credit on the mar...