Case Law Details
Urvashi Porwal
Brief of the Case
It was held that it is a common knowledge that any insurance company is required to have chairs and tables to render services to their clients. The said tables and chairs are used for rendering services of general insurance, accordingly CENVAT credit availed on such furniture & fittings is allowed.
Facts of the Case
The relevant facts that arise for consideration are the appellant being in the business of general insurance were paying service tax on the services rendered by them and were availing benefit of CENVAT credit of service tax paid on the various input services as also on capital goods and inputs. Appellant availed the CENVAT credit of Central Excise duty paid on Furniture and Fittings during the period 2006-07, 2008-09 and also on the service tax paid by the canteen contractor. Revenue is of the view that they could not have availed CENVAT credit on Furniture and Fittings as they were not capital goods and on the Outdoor Catering Services it was not related to the services rendered by them which are taxable. Show cause notice was issued which was contested on merits as well as on limitation; after due process of law, the adjudicating authority confirmed the demands raised on the ineligibility of CENVAT credit on Furniture and Fittings and canteen services, along with interest and imposed penalties under various sections and rules.
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