Appeal Granted for Redetermination of Service Tax on Foreign P&I Club Services in Light of Supreme Court Ruling &IClubs.

The appellant's appeal against the Order in Original concerning service tax on services from foreign P&I Clubs was allowed by remand. The CESTAT agreed to a denovo adjudication, considering a Supreme Court judgment that may affect the taxability of the services. All issues and contentions remain open for reconsideration.

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Issues involved: Appeal against Order in Original regarding service tax on services provided by Protection & Indemnity Clubs (P&I Clubs) located outside India.

Summary:
The appellant availed services from P&I Clubs outside India for third party liabilities but did not pay Service Tax u/s 66A of the Finance Act, 1994. After a Statement of Demand was issued, the Commissioner confirmed the demand of service tax, interest, and penalties. The appellant contended that the membership fee paid to the club for third party insurance is not taxable, citing a judgment of the Hon'ble High Court of Gujarat. The original authority held that the payment made by the appellant was rightly classifiable under general insurance service, not covered by mutuality. The appellant argued that the services provided by P&I Clubs are unique and not insurance services, referencing a later decision of the Hon'ble Supreme Court. Both parties agreed for remanding the matter for denovo adjudication in light of the Supreme Court judgment, leading to the appeal being allowed by way of remand.

The appellant's contention regarding the non-taxability of services provided by the club due to lack of duality and mutuality was not accepted by the original authority. The appellant sought a denovo adjudication considering a later decision of the Hon'ble Supreme Court, supported by a High Court order setting aside an assessment. The matter was remanded for reconsideration in light of the Supreme Court judgment, with all issues and contentions left open.

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