2016 (5) TMI 843 - AT - Service Tax

Denial of Cenvat credit - availed Marine Insurance Policy Service - Service tax paid on insurance of the goods cleared from the factory gate till that reaches abroad - Held that - it does not appeal to common sense as to why insurance is not integral to export to protect the property for the reason that one would not prefer to cause prejudice to him. Taking up marine insurance policy not being in dispute as well as export not in dispute, followed by reversal of the credit under protest. Therefore, the order of the Commissioner (Appeals) is set aside as it does not appear to be proper and reasonable to survive. - Decided in favour of appellant

Summary

The Appellate Tribunal CESTAT CHENNAI rejected an adjournment request in a case where the appellant availed Marine Insurance Policy Service and paid Service Tax of Rs. 11,60,568. The credit of Service Tax paid on the insurance was denied by Revenue. The Tribunal found the denial unreasonable as insurance is integral to export to protect property, and ordered a refund of the Service Tax paid on the policy.