https://www.taxtmi.com/caselaws?id=395903 Mandatory deposit insurance for banks, being a statutory requirement connected with the conduct of banking business, qualifies as an input service under Rule 2(l) because it is commercially expedient, protects the bank's continued functioning, and is used for providing taxable output services. The exclusion in section 66D(n) was held not to cover acceptance of deposits, as it addresses extending deposits, loans or advances. The reversal mechanism under Rule 6(3B) did not remove the service from the main definition. CENVAT credit of service tax paid on the insurance premium was therefore admissible. en-us Fri, 20 Mar 2020 00:00:00 +0530 Wed, 29 Nov 2023 09:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395903 Mandatory deposit insurance for banks, being a statutory requirement connected with the conduct of banking business, qualifies as an input service under Rule 2(l) because it is commercially expedient, protects the bank's continued functioning, and is used for providing taxable output services. The exclusion in section 66D(n) was held not to cover acceptance of deposits, as it addresses extending deposits, loans or advances. The reversal mechanism under Rule 6(3B) did not remove the service from the main definition. CENVAT credit of service tax paid on the insurance premium was therefore admissible. Case-Laws Service Tax Fri, 20 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395903