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TMI Blog2020 (10) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... attributable, mathematically, to rendering of services by the appellant on which tax liability was not required to be discharged. In addition, the charging of appropriate interest under section 75 of Finance Act, 1994 and imposition of penalty of like amount under section 78 of Finance Act, 1994, in order-in-original no. 2/ST/RN/COMMR/M-II/14-15 dated 30th January 2015 of Commissioner of Central Excise, Mumbai-II while dropping demand of Rs. 16,82,84,29,596 that had been proposed in the show cause notice issued to the appellant are also under challenge. 2. Learned Chartered Accountant, appearing for the appellant, submits that the proceedings culminating in the impugned order were initiated in connection with two of their products, viz., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 65 (105) of Finance Act, 1994, rendered liable to tax. It was in these circumstances that the service tax authorities contended that, for the entire period of dispute, the portion of the premium, other than towards 'risk cover', paid by holders of 'endowment policy' and the portion of the premium paid by holders of 'unit linked insurance policy (ULIP)' other than towards 'risk cover between 1st April 2008 and 15th May 2008, was consideration for 'exempted services' and that credit of tax paid on several 'input services' utilized in common for rendering of both taxable and exempted services was required to be adjusted accordingly. 3. Learned Chartered Accountant contends that the recovery does not have the authority of law as 'life insu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Life Insurance Company v. Commissioner of Customs, Central Excise & Service Tax, Hyderabad [2019 (2) TMI 868-CESTAT Hyderabad], in Max New York Life Insurance Co Ltd v. Commissioner of Central Excise & Service Tax (LTU), Delhi [2018 (2) TMI 1262-CESTAT New Delhi] and in Sahara India Life Insurance Co Ltd v. Commissioner of Central Excise & Service Tax, Lucknow [final order no. 70810/2018 dated 22nd February 2018 disposing of appeal no. ST/51974/2015]. 5. Learned Authorized Representative informed that the ineligibility to avail CENVAT Credit pertains to the period when the taxable service was limited to 'risk cover' in both 'endowment policies' and 'unit linked insurance plan (ULIP) policies' and that the disallowances are in conformity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Consequently, the inference that the service described in section 65 (105) (zx) of Finance Act, 1994 is a bundle from which one has been isolated for tax till 1st May 2011 is also not tenable; this should have been amply evident from the absence of a new entry to describe such service identified for levy of tax. Neither does the tax on 'management of segregated fund' in section 65 (105) (zzzzf) of Finance Act, 1994 with effect from 16th May 2008 obtain support for it as this freshly incorporated taxable service is a fiction designed by law through a deeming provision. Hence, it is abundantly clear that the expansion of the taxable value through the two amendments supra did not bring new services into existence. Even if it did, the subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal validity. That an amount from the consideration was added to the taxable component will not suffice as the epiphany of a new taxable event. 16. At the same time, the presumption against superfluity in interpretation of statutes binds us to search for, and determine, the nature of inclusion. As we are dealing with the schema of mechanism for avoiding the cascading effect of taxation upon the final customer who bears the burden of indirect tax levy, it can be posted that there is a recipient of service with whom the buck stops. Such stoppage could be owing to lack of further commercial engagement of the service or because of the non-existence of such service within the jurisdiction to tax. Tax laws have nothing to do with the last consu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 dated 18th December 2019 in appeal no. ST/85961/2019 against order-in-original no. 3/ST/RN/Commr/M-II/14-15 dated 29th January 2015 of Commissioner of Central Excise, Mumbai-II]. It is common ground that the dispute does not pertain to exemption of taxable service under the authority of section 93 of Finance Act, 1994 referred to in the main portion of the definition of 'exempted service' in CENVAT Credit Rules, 2004 and, as it proceeds from reliance upon the inclusive component of the definition, the decision, in re SBI Life Insurance Company Ltd, deprives the impugned order of legitimacy. 8. In re Shriram Life Insurance Company, on appeal of Revenue against the dropping of proceedings for recovery of CENVAT credit, it has been held by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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