Case Law Details
Brief facts arising for consideration of the case are that the appellant M/s Tata AIG Life Insurance Co. Ltd. are holders of service tax registration under the category of Insurance auxiliary services. The service rendered by insurance agents is covered under the category of insurance auxiliary services. However, the liability to pay service tax on such services is on the recipient of the services, which are the insurance companies who engage the agents as per the provisions of rule 2(1)(d)(iii) of the Service Tax Rules, 1994. It was observed that the appellant had utilised input service tax credit in respect of service tax on insurance auxiliary services. The department was of the view that since the appellant is only a recipient of the service and is not providing any output service, they cannot utilise any input service tax credit for payment of service tax on Insurance auxiliary service.
In the appellant’s own case in order dated 26.05.2008, this Tribunal has granted waiver from pre-deposit of dues adjudged from the previous period. Further, in respect of similar cases involving identical issues in the case of Birla Sun life Insurance Co. Ltd. and HDFC Standard Life Insurance Co. Ltd. (cited supra) this Tribunal has granted unconditional waiver from pre-deposit of dues adjudged. The Honourable High Court of Punjab & Haryana in the case of CCE vs. Nahar Industrial Enterprises Ltd., cited supra have also held in a similar case pertaining to GTA service that Cenvat Credit can be utilised for payment of service tax on GTA service by the recipient of such services. Thus, we are prima facie of the view that the appellant has made out a prima facie case in their favour for grant of waive of pre-deposit of the dues adjudged.
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH, MUMBAI
COURT NO.II
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