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TMI Blog2019 (3) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... has explained that such insurance policy is taken to cover the risk of accident or damage of the goods such as computers, routers etc. which are transported to the premises of the customer - the appellant herein is not a manufacturer but an output service provider and the definition of input service would not be applicable to output service provider. Any input service used for providing output service is eligible for credit in the case of an output service provider. Hence disallowance of credit on this policy is unjustified. The third type of insurance policy is umbrella fixed asset policy. The appellant has taken this insurance policy to cover the risk such as fire, theft, weather damages of the fixed assets of the appellant as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process of law, the original authority confirmed the demand, interest and also imposed penalty. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri Nitin Chopra appeared and argued the matter. He submitted that the appellant had availed input service credit in respect of three types of insurance policies. The first one is Errors Omission Insurance Policy. The said policy is a form of liability insurance which mainly focuses on alleged failure to perform on the part of financial loss caused by error or omission in the service provided or product sold by the appellant, the financing loss would be taken care by such policy. The policy is intended to cover the risk in error ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order. She submitted that these type of insurance policies are only to cover risk which occur occasionally and not intended for use in the ordinary course of business. Therefore they have no nexus with the output service provided. 4. Heard both sides. 5. The appellant is aggrieved by the disallowance of credit of service tax paid on the premium on various types of insurance policies. The first policy is in the nature of errors and omission insurance policy. It is a form of insurance policy which covers the risk on failure to perform on the part of financial loss caused or shortage in the service provided or the products sold. The Tribunal in the appellant s own case cited supra had analyzed this issue with regard to errors a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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