https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=756312 https://www.taxtmi.com/caselaws?id=756312 Classification of service - Insurance Auxiliary Service or not - irregular availment of CENVAT Credit, on the basis of documents which are not prescribed document under Rule 9(1) of Cenvat Credit Rules, 2004 - time limitation. Classification of service - HELD THAT:- From the SCN it is observed that the Department has not brought in any evidence or allegation to the effect that the Appellant has obtained any licence from the IRDA authorities to act as intermediary or agent for the Insurance companies. It is also noticed that the company is purchasing Insurance policy by paying certain amount and selling the same to the individual members at a particular rate. For such an activity, the Appellant may be keeping some margin for themselves for providing some other allied services to the members - There is nothing to indicate from the show cause notice that the Appellant has received any commission from the insurance company as an intermediary or as an agent. In case of insurance auxiliary service , the person acting as an intermediary or an agent receives commission from the insurance company since they act as an intermediary between the insurance company and the clients of the insurance company. In this case for the insurance company, the Appellant himself is the client. The individual members of the club are not the clients of the insurance company. The sale value minus purchase value of the policy would be the profit for the club - the Appellant has not provided any service under the category of insurance auxiliary service and set aside the confirmed demand of Rs.62,06,774/-. I rregular availment of CENVAT Credit, on the basis of documents which are not prescribed document under Rule 9(1) of Cenvat Credit Rules, 2004 - HELD THAT:- The Appellant is paying the Service Tax on the membership fee collected from the members. The insurance companies which are providing the insurance service, are charging the Service Tax. There is a direct nexus between the input services i.e. insurance service provided by the insurance companies and the output service provided by the Appellant in the form of club or association service. Hence, this meets the requirement of input service in terms of Section 2(l) of the Cenvat Credit Rules, 2004 - there are no reason to doubt the authenticity of the transactions and the Service Tax payment made by the insurance companies. The appellant has enclosed all the copies of the invoices issued by the insurance companies. Therefore, it is held that the Appellant has correctly taken the Cenvat Credit and set aside the confirmed demand of Rs.4,10,25,659/-. Time Limitation - HELD THAT:- Being a public limited company, they are also filing their Income Tax Returns and maintaining proper records in the form of Profit and Loss account, Balance Sheet etc. The Department has failed to bring any evidence to the effect that the Appellants have suppressed any facts in order to evade payment of Service Tax. Therefore, the invocation of extended period in this case is legally not sustainable. The Appeal stands allowed both on merits as well as on limitation. Case-Laws Service Tax Tue, 30 Jul 2024 00:00:00 +0530