CENVAT credit on reinsurance services for insuring business risks allowable

Oriental Insurance Company Ltd. Vs Commissioner, LTU (CESTAT Delhi)

In the instant case, the reinsurance services availed by the Appellant are for insuring its business risks and not in respect of any particular motor vehicle. Reinsurance, by its nature, pertains to the insurance of business of the Appellant. Reinsurance services have never been availed by the Appellant in respect of a particular motor vehicle. In such a case, the exclusion clause in in Rule 2(l) has no applicability to the present case and denial of CENVAT credit on basis of such a cla

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