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TMI Blog2017 (11) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... sential ingredient for providing the output service and has direct nexus with the providing of output service - refund allowed - appeal dismissed - decided against Revenue. - Appeal No. ST/60470/2017 - Final Order No. 62020/2017 - Dated:- 26-10-2017 - Mr. Devender Singh, Member (Technical) Sh. Satya Pal, AR for the Appellant Ms. Vasudha Budeja, CA for the Respondent ORDER Per : Devender Singh The Revenue is in appeal against the order of the Commissioner (Appeals) wherein the Ld. Commissioner (Appeals) has allowed the refund of Service Tax of ₹ 9,64,126/- paid on input service of professional indemnity insurance service by the respondent namely Ernst And Young Associates LLP. 2. The period involved in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professional indemnity service used by the assessee, who are providing consultancy in taxation and audit service can be considered as input service in terms of definition of input service in the Cenvat Credit Rules. 7. I find that the issue is no longer res integra and has been decided in the favour of respondent in their own case in CST, Delhi-IV Vs. Ernst and Young Associates LLP (supra) wherein this Tribunal held as below:- 5. I find that the main contention of the Revenue is that after amendment of the definition of input service from 1.4.2011, the word the activity relating to business has been deleted from the definition of input service and the impugned service cannot be said to be directly used for providing any output serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of Section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for- (a) construction of a building or a civil structure or pa part thereof; or (b) laying of founding or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor vehicle except when used for the provision of taxable series for which the credit on motor vehicle is available as capital goods; or (C) such as those provided in relation to outdoor catering, beauty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice. 7. I find that the adjudicating authority has allowed refund for general insurance service for employees, equipments and property, for insuring the company against unforeseen circumstance. On the same analogy, the professional indemnity insurance service has to be viewed in the context of providing the consultancy or other professional services, where the assessee has to safeguard itself against unforeseen legal damages/costs due to negligence or other bonafide mistakes of the employees/partners. Hence, the professional indemnity insurance service is an essential ingredient for providing the output service and has direct nexus with the providing of output service. Following the above judgment of the Tribunal in the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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