2017 (11) TMI 39

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....volved in this case is from April, 2014 to June, 2015. The refund was rejected by the adjudicating authority on the ground that it had not direct nexus with output service. The Ld. Commissioner (Appeals) allowed the refund on the ground that the professional indemnity insurance policy is for insuring the business risks and has nexus with output service. Aggrieved from the same, the Revenue has filed this appeal. 3. Ld. AR submits that the period involved is after 01.04.2011 and the words activity relating to business have been omitted from the definition of input service and hence in order to qualify as input service, the same should be used for providing output service and the impugned service cannot be said to have been used for provid....

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.... used for providing any output service. It is also argued that the impugned service is not covered by the inclusive part of the definition and it is used only when output service is complete and delivered. 6. On the question as to whether the professional indemnity insurance service has nexus with output service, I completely agree with the analysis of the Commissioner (Appeals) in the following paragraphs extracted from the Order-in-Appeal: The Definition of Input Service Rule 2 (I) of Cenvat Credit Rules, 2004 defines the Input Service w.e.f.01.07.2012. "(I) Input service means any service, (i) used by a provided of taxable service for providing an output service; or (ii) used by the manufactur....

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.... (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits excluded to employees on vacation such as leave or home travel concession, when such services are used primarily for personal use or consumption of any employee , Definition of Input service for different relevant period makes it amply clear that in order to quality as Input service, any service used by a provider of output service should satisfy the following conditions: It should fall under main part or inclusive part of the definition of input service. It should not be covered in the exclusion part of ....