https://www.taxtmi.com/caselaws?id=762703 Deposit insurance premium paid by banks to the Deposit Insurance and Credit Guarantee Corporation is treated as an input service because it is compulsory for a bank to remain licensed and continue banking operations. The service has a direct nexus with the output banking service and is not merely a peripheral business expense. On that basis, the service tax paid on the premium is eligible for CENVAT credit, and the contrary view that it falls outside the scope of input service is not accepted. Reversal under the relevant CENVAT rule does not affect the admissibility of credit on this statutory insurance service. en-us Tue, 03 Dec 2024 00:00:00 +0530 Fri, 06 Dec 2024 08:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762703 Deposit insurance premium paid by banks to the Deposit Insurance and Credit Guarantee Corporation is treated as an input service because it is compulsory for a bank to remain licensed and continue banking operations. The service has a direct nexus with the output banking service and is not merely a peripheral business expense. On that basis, the service tax paid on the premium is eligible for CENVAT credit, and the contrary view that it falls outside the scope of input service is not accepted. Reversal under the relevant CENVAT rule does not affect the admissibility of credit on this statutory insurance service. Case-Laws Service Tax Tue, 03 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762703