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2014 (12) TMI 919 - AT - Service TaxGeneral Insurance Services - During the relevant period i.e. from October 2004 to March 2007 the appellant had provided General Insurance Service to eligible employees falling under Employees State Insurance Scheme (ESI Scheme) by way of providing medical and other related insurance service in exchange of premium at different rates. - Section 65(105) (d) of the Finance Act 1994 - Held that - Both sides now agree that by virtue of Section 100 of the Finance Act 1994(No.2) the services rendered by the appellant are exempted from the purview of Service Tax for the relevant period. On a plain reading of the said provision it is clear that the services rendered by the appellant for the period October 2004 to March 2007 are not be leviable to Service Tax. In the result we do not find merit in the impugned order accordingly the same is set aside - Decided in favour of assessee.
Issues:
Application for waiver of pre-deposit of Service Tax, imposition of penalty under Sections 77 and 78 of the Finance Act, 1994. Analysis: The case involved an application for waiver of pre-deposit of Service Tax amounting to Rs. 49.91 Crores and an equal penalty imposed under Sections 77 and 78 of the Finance Act, 1994. The appellant, a statutory body under the Ministry of Labour and Employment, was providing general insurance services to its member-employees under the Employees State Insurance Act, 1948. The Service Tax demand was confirmed for the period from October 2004 to March 2007, classifying the services under the category of General Insurance Services as per Section 65(105)(d) of the Finance Act, 1994. However, it was argued that the services provided by the Employees State Insurance Corporation were exempted from Service Tax for the relevant period under Section 100 of the Finance Act, 1994. The Ld. A.R. for the Revenue accepted that the services rendered by the appellant were indeed exempted from Service Tax for the relevant period as per Section 100 of the Finance Act, 1994. Upon hearing both sides, it was found that the appeal could be disposed of at that stage. It was noted that during the relevant period, the appellant had provided General Insurance Services to eligible employees under the Employees State Insurance Scheme by offering medical and related insurance services in exchange for premiums. The demand notice issued alleged non-payment of Service Tax, but both parties agreed on the exemption provided by Section 100 of the Finance Act, 1994. The Tribunal, after considering the arguments and the provisions of Section 100 of the Finance Act, 1994, concluded that the services rendered by the appellant from October 2004 to March 2007 were not liable to Service Tax. Consequently, the impugned order was set aside, and the appeal was allowed. The requirement of pre-deposit was waived, and the appeal was disposed of in favor of the appellant.
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