9911796707
TMI Blog2014 (8) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... Pune and is centrally registered with the service tax department for discharge of service tax liability on general insurance services. The appellant had appointed independent insurance auxiliary agents to promote their business. These insurance agents are providing services to the appellant and the said service is taxable under the category of insurance auxiliary services under Section 65(105)(zl) of the Finance Act, 1994. In terms of Rule 2 (1)(d)(iii) of the Service Tax Rules, 1994, the liability to pay the service on insurance auxiliary services has been shifted to service receiver i.e. on insurance company. Accordingly, the appellants discharge the service tax liability as a receiver of service from the insurance auxiliary agents. Afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusively used in providing non-taxable insurance service in State of Jammu & Kashmir. Accordingly, two show-cause notices were issued and the CENVAT Credit availed by the appellants for the service tax paid by them was denied. Aggrieved by the said order, the appellants are before us. 3. Heard both sides. 4. The learned Counsel for the appellant submits that in this case the branches located in the State of Jammu & Kashmir have received the services of insurance auxiliary agents for the policies of clients/assets located in Jammu & Kashmir only. Therefore, they are not liable to pay service tax on the said services. The service tax which was paid by them was refundable accordingly, they have taken the credit of the same. Therefore, takin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts have provided insurance auxiliary service for the clients/assets located in the State of Jammu and Kashmir to the branches of the appellants located in Jammu and Kashmir which means the place of providing the service is Jammu and Kashmir and the service provider was located in the State of Jammu and Kashmir and the service recipient is also located in Jammu and Kashmir. To confirm the demand for a service, the place of provision of services has to be seen. The place of provision could be either one of the following:- (a) It could be place of the provider of service; (b) It could be place of recipient of service; (c) It could be place of performance of service i.e. Where the risk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said provisions, it is clear that the service provider, the branches are recipient of the services and are directly concerned with the receipt of the service. With effect from 18.4.2006, the provisions of Section 66A of the Finance Act has been introduced which is reproduced here-in under:- "66a. (1) Where any service specified in clause (105) of section 65 is,- (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and (b) received by a person (h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of residence, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted. 7.4 The said provisions are not directly related to the facts of this case but concept of establishment most directly concerned with the receipt of the service will be equally applicable to the facts of this case and therefore the J & K branches are recipient of the service. 7.5 From the above discussion, it is very much clear that the insurance auxiliary services provided by the agents in the State of Jammu & Kashmir are not taxable. Therefore, the appellants are not liable to pay service tax for the said services of the insurance agents. In these terms, whatever credit is taken by the appellant is nothing but the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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