9911796707
TMI Blog2023 (12) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... rger Bench of this Tribunal in South Indian Bank being Final Order No. 20691-30708/2020 dated 23.09.2020 [ 2020 (11) TMI 120 - CESTAT BANGALORE] , have held that similarly situated assessee like banks are entitled to take Cenvat Credit on the premium paid to DICGC for the insurance services rendered by DICGC to the banks. Hon ble High Court observed that without accepting deposits the bank cannot extend loans which is necessary to earn profit and the banks are under Statutory obligations to ensure the deposits received are issued for conducting the banking business. Further, the commercial banks face the risk of being dilicensed by the RBI if they did not insure the deposits with the DICGC (subsidiary of RBI). The impugned order is set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Deposit Insurance Credit Guarantee Corporation (DICGC) was formed by a Central Act called The Deposit Insurance Credit Guarantee Corporation Act, 1961 (DICGC Act). The said Acts provides for various regulations relating to insurance of deposits, payment of premium etc. As per Section 11 of DICGC Act, all the commercial banks are required to be registered with the Corporation soon after they are granted license by the Reserve Bank of India for the purpose of carrying on the business of banking. Section 15 of the said Act mandates that every bank registered with DICGC shall pay a premium on the deposits. Section 15A (1) of the said Act, empowers DICGS to cancel the registration if any bank fails to pay the premium. Thus, a combined read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15(1) of Cenvat Credit Rules, 2004 1,95,75,169 Penalty 15(3) of Cenvat Credit Rules, 2004 with Section 78 of Finance Act, 1994 19,57,51,685 Aggrieved by this, the appellant is before this Tribunal. 6. Heard the parties. We find that the issue is no longer res-integra and the same have been adjudicated by the Hon ble Kerala High Court in C.E.Appeal No. 1 of 2021 along with other appeals and vide Judgment dated 05.12.2022 the High Court relying on the ruling of Larger Bench of this Tribunal in South Indian Bank being Final Order No. 20691-30708/2020 dated 23.09.2020, have held that similarly situated assessee like banks are entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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