Governmental authority status supports construction-service exemption, while pre-cutoff contract and stamp-duty compliance requires verification on re...
Automated Free Sale and Commerce Certificates enable paperless processing while retaining risk-based manual verification for selected exporter applica...
Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
The Tribunal, after examining relevant provisions, held that the insurance service provided by the Deposit Insurance Corporation to banks is an 'input service', and banks can avail CENVAT credit of service tax paid for this service for rendering 'output services'. The Larger Bench affirmed this view, and the Kerala High Court upheld the Tribunal's decision, which attained finality. Another Larger Bench in Bank of America case also affirmed this view. The Tribunal found no violation of Rules 4(7) and 9(1) by the appellant in availing CENVAT credit before invoice issuance. Registration with DICGC is compulsory for banks, and payment of insurance premium is integral to providing banking services, entitling banks to avail CENVAT credit. Accordingly, the impugned orders were set aside, and the appellant's appeals were allowed.
The Tribunal, after examining relevant provisions, held that the insurance service provided by the Deposit Insurance Corporation to banks is an 'input service', and banks can avail CENVAT credit of service tax paid for this service for rendering 'output services'. The Larger Bench affirmed this view, and the Kerala High Court upheld the Tribunal's decision, which attained finality. Another Larger Bench in Bank of America case also affirmed this view. The Tribunal found no violation of Rules 4(7) and 9(1) by the appellant in availing CENVAT credit before invoice issuance. Registration with DICGC is compulsory for banks, and payment of insurance premium is integral to providing banking services, entitling banks to avail CENVAT credit. Accordingly, the impugned orders were set aside, and the appellant's appeals were allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
