2017 (6) TMI 1198 - AT - Service Tax

CENVAT credit - insurance premium paid - Held that - There is certain amount of risk against lending which is made out of deposits received from depositors. Therefore, taking insurance to protect interest of the bank being integrally connected with the business of banking, Cenvat credit of service tax paid claimed is allowable - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT MUMBAI allowed Cenvat credit for service tax paid on insurance premium by a bank, as the insurance was integrally connected with the banking business to protect against risks in lending. The appeal was allowed.