https://www.taxtmi.com/caselaws?id=761485 CESTAT Mumbai ruled that banks are entitled to Cenvat credit on service tax paid for insurance premiums to DICGC and commission/brokerage for underwriting government securities to maintain statutory liquid ratio. The Tribunal followed the precedent in South Indian Bank case, holding that services necessary for statutory compliance qualify as input services under Cenvat Credit Rules 2004. The court emphasized that activities essential for a bank's existence as a service provider cannot be separated from core banking functions. Additionally, penalty of Rs. 25.53 lakhs was set aside as the appellant had paid service tax with interest before show-cause notice issuance, making penalty imposition invalid under Section 73(3) of Finance Act 1994. en-us Wed, 06 Nov 2024 00:00:00 +0530 Thu, 12 Mar 2026 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761485 CESTAT Mumbai ruled that banks are entitled to Cenvat credit on service tax paid for insurance premiums to DICGC and commission/brokerage for underwriting government securities to maintain statutory liquid ratio. The Tribunal followed the precedent in South Indian Bank case, holding that services necessary for statutory compliance qualify as input services under Cenvat Credit Rules 2004. The court emphasized that activities essential for a bank's existence as a service provider cannot be separated from core banking functions. Additionally, penalty of Rs. 25.53 lakhs was set aside as the appellant had paid service tax with interest before show-cause notice issuance, making penalty imposition invalid under Section 73(3) of Finance Act 1994. Case-Laws Service Tax Wed, 06 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761485