Bombay High Court Adjourns Appeals on CENVAT Credit for Service Tax

The High Court of Bombay adjourned appeals challenging a Tribunal order on CENVAT Credit for service tax on insuring bank deposits. The issue of Assessee entitlement to the credit was referred to a larger bench of the Tribunal, prompting the adjournment for 12 weeks. The Revenue Counsel planned to seek an early hearing for the reference. Parties were given time to present the larger bench's decision for consideration. The matter was set for a hearing on 18th December 2019, illustrating the Court's thorough approach in seeking a comprehensive review before reaching a final decision.

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Issues:
- Challenge to a common order passed by the Customs, Excise and Service Tax Appellate Tribunal regarding entitlement to CENVAT Credit for service tax paid on premium for insuring bank deposits.

Analysis:
The High Court of Bombay heard appeals challenging a common order by the Tribunal regarding the entitlement of the Assessee to avail CENVAT Credit for service tax paid on premiums for insuring bank deposits. The central issue in question was whether the Assessee could claim such credit. The Court noted that this issue had been referred to a larger bench of the Tribunal in two separate cases. Consequently, at the request of the parties, the appeals were adjourned for 12 weeks to allow the Advocates to present the decision of the larger bench for consideration.

The learned Counsel for the Revenue expressed the intention to apply to the Tribunal for an early hearing of the reference made to the larger bench in the two cases mentioned earlier. The Assessee were given the option to join the Revenue in such an application. The adjournment was granted to enable the parties to submit the opinion of the larger bench on the issue raised in the present appeals. The matter was scheduled to be heard again on 18th December 2019. This decision reflects the Court's approach to ensure a comprehensive review of the legal issue at hand by considering the opinion of a larger bench before making a final determination in the appeals.

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