TaxTMI 
TaxTMI 
2026 (1) TMI 1012
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.... by denying the Cenvat Credit of Service Tax paid on professional indemnity insurance amounting to Rs.27,55,103/- with interest and equal penalty in respect of SCN dated 18.10.2013; and Rs.34,04,883/- with interest and equal penalty in respect of SCN dated 20.04.2015. 2. Briefly stated facts of the present case are that the Appellant are primarily engaged in the business of providing various Advisory Services and Chartered Accountant Services such as auditing services, compliance services, preparing financials of the company and various complicated advice to the clients. The Appellant had taken the professional indemnity insurance to cover the risk against the loss arising in connection with professional business i.e. negligent act, erro....
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....020/2017 dated 26.10.2017] * Commr of S.T., Delhi-IV vs. Ernst & Young Associates LLP - 2017-VIL-863-CESTAT-CHD-ST [Final Order No. 61916/2017 dated 06.10.2017] * KPMG India Ltd vs. CCE & ST, Delhi-IV and vice versa - 2017 (9) TMI 1261 CESTAT Chandigarh [Final Order No. 61562-61563/2017 dated 17.08.2017] * BSR & Co. - Order-in-Appeal No. 10/ST/CGST-APPEALGURUGRAM/SG/2021-22 dated 27.05.2021 passed by the Commissioner (Appeals) CGST-Gurugram 5. On the other hand, the learned Authorized Representative for the Revenue reiterates the findings of the impugned order. 6. After considering the submissions made by both the parties and perusal of the material on record as well as the case-laws relied upon the Appellan....
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....Cenvat Credit Rules, 2004. The same view was taken by this Tribunal in the appellant's own case vide final order dated 06.10.2017, wherein this Tribunal observed as under: - 5. I find that the main contention of the Revenue is that after amendment of the definition of input service from 1.4.2011, the word the activity relating to business has been deleted from the definition of input service and the impugned service cannot be said to be directly 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....
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....hereof; or (b) laying of founding or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor 19 vehicle except when used for the provision of taxable series for which the credit on motor vehicle is available as capital goods; or (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 trav....
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....he same analogy, the professional indemnity insurance service has to be viewed in the context of providing the consultancy or other professional services, where the assessee has to safeguard itself against unforeseen legal damages/costs due to negligence or other bonafide mistakes of the employees/partners. Hence, the professional indemnity insurance service is an essential ingredient for providing the output service and has direct nexus with the providing of output service." 8. We further note that this Tribunal, in the case of KPMG India Ltd (supra), has also held that the asseessee who is the service provider and the services have been received by the assessee in the course of their business of providing output service, the assessee i....