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TMI Blog2015 (5) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... le 2(l) of the CCR, 2004. Therefore, the applicant is entitled to avail Cenvat credit on the reinsurance service received by them as per Rule 2(l) of the CCR, 2004. - Stay granted. - Service Tax Stay Application No. 54640 of 2014, Service Tax Appeal No. 54096 of 2014 - Stay Order No. SO/ST/51272/2015-CU(DB) - Dated:- 9-3-2015 - Ashok Jindal, Member (J) And R K Singh, Member (T),JJ. For the Appellants : Shri V Lakshmikumaran, with Manish Gaur Narender Singh Advs. For the Respondent : Shri Govind Dixit, AR ORDER Per: Ashok Jindal: The applicant is seeking waiver of pre-deposit of an amount of ₹ 115,78,81,098/- along with interest and equivalent amount of penalty under section 78 of the Finance Act, 1994. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led that the applicant were issuing policies to their customers for covering various insurance. The applicants were depositing service tax on the amount insurance premium. It was also found that the applicant has taken Cenvat Credit of service tax on the service tax paid by reinsurance company which has been categorized as under: A. The invoices issued by reinsurer company; and B. The invoices issued by pool member of the company on third party motor vehicle insurance their respective to share. Therefore, it was alleged that pool arrangement is sort of collective insurance as to which company is reinsurer company among other. The applicant is also a member of pool, as have been issuing similar invoices to other members. The pool is ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, whatever service tax has been paid by them, is entitled to Cenvat credit. Further, he submits that as per Rule 9 of the CCR. 2004, the invoices issued by a service provider is a proper document against which they have taken the Cenvat credit. He further submits that a similar issue came up before this Tribunal in the case of PNB Metlife India Insurance Co. Ltd. vs. CCE [2014 (36) STR 891 (Tri-Bang)] wherein Tribunal held that re-insurance is an input service and applicant is entitled to take Cenvat credit on reinsurance. Therefore, he prayed that waiver of pre-deposit be granted. 4. On the other hand, Shri Govind Dixit, learned AR opposed the contention of the learned Counsel and submits that for reinsurance, the applicant is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by reinsurance company who is a member of pool as per Rule 9 of the CCR, 2004 without receiving the service. 7. For the first issue, the core reason to deny the Cenvat credit is that the service has been availed by the applicant after providing the output service. Prima facie, we are in agreement with the learned counsel for the applicant that when the applicant undertake the insurance, i.e. the insurance date of commencement of risk by the insurance company for covering the insurance of Policy holder and that service has to be provided for a particular period of time as per the agreement. So, the output service is provided by the applicant till the termination of agreement, therefore, the service received by the applicant is a ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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