2016 (5) TMI 843 - AT - Service Tax

CESTAT Chennai Orders Service Tax Refund for Marine Insurance, Rejects Adjournment

The Appellate Tribunal CESTAT CHENNAI rejected an adjournment request and ordered a refund of Service Tax paid on a Marine Insurance Policy, finding the ... Credit of service tax - refund of service tax - marine insurance as input service integral to export - reversal of input tax credit under protest - reasonableness of appellate orderCredit of service tax - marine insurance as input service integral to export - refund of service tax - Entitlement to credit/refund of service tax paid on marine insurance procured in relation to exported goods. - HELD THAT: - The Tribunal found that marine insurance procured to protect goods cleared from the factory gate until they reach abroad is integral to the export of those goods. Export as such was not in dispute and taking the marine insurance policy was not disputed. The reversal of the credit under protest by Revenue, and the consequent order of the Commissioner (Appeals), was held to be improper and unreasonable. On that basis the appellate order was set aside and the appellant was held entitled to relief by way of refund of the Service Tax paid on the marine insurance policy, subject to compliance with law. [Paras 3]Order of the Commissioner (Appeals) set aside; refund of service tax paid on the marine insurance policy shall follow in accordance with law.Final Conclusion: The Tribunal allowed the claim for refund/credit of Service Tax paid on marine insurance for exported goods, set aside the Commissioner (Appeals) order as unreasonable, and directed that refund shall be granted in accordance with law. The Appellate Tribunal CESTAT CHENNAI rejected an adjournment request in a case where the appellant availed Marine Insurance Policy Service and paid Service Tax of Rs. 11,60,568. The credit of Service Tax paid on the insurance was denied by Revenue. The Tribunal found the denial unreasonable as insurance is integral to export to protect property, and ordered a refund of the Service Tax paid on the policy.