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TMI Blog2024 (6) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... s available to the provider of output service who are specified in Sub-Clause (D) of Clause 105 of Section 65 of the Finance Act, 1994 who is by definition the insurer carrying on general insurance business in relation to General Insurance and providing service to a policy holder or to any other person. It has to be interpreted and understood in the manner two negatively worded statutes are to be understood. By definition itself General Insurance Company has been exclusively granted the right to use CENVAT Credit in relation to motor vehicles insured by them or reinsured by them but the learned Commissioner had committed a blunder in reproducing the section wrongly in his order and replacing provider of output service with provider of input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch availment but due to change introduced in the definition of input service w.e.f. April, 2011 with introduction of exclusion clause through which certain inputs were kept outside the purview of availment of CENVAT Credit, Appellant was asked to pay the above noted amount for the period from April, 2011 to March, 2012 by issue of one show-cause-cum-demand notice that was adjudicated by the Commissioner in the above referred appeal which resulted in confirmation of duty, interest and penalties which is assailed before us in this appeal. 3. During course of hearing of the appeal learned Counsel for the Appellant Mr. Thirumalai Sompath submitted that re-insurance of the insurance done to motor vehicles has become a statutory obligation in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax, Vs. Shriram General Insurance Company Ltd., Special Leave Petition (CIVIL) Diary No. 4928/2023 dated February 27, 2023, Supreme Court, he further submitted that issue is no more res integra that CENVAT Credit shall be admissible towards re-insurance services and are not excluded from the definition of input services under Rule 2(l) of CENVAT Credit Rules, 2004 from 01.04.2011, for which the order passed by the Commissioner is unsustainable both in law and facts. 4. Learned Authorised Representative Mr. Pramod Kumar Maurya argued in support of the reasoning and rationality of the order passed by the Commissioner and stated that exclusion clause under Rule 2A(BA) clearly excludes such insurance or re-insurance taken, from the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above provision, it can be said that Sub-Clause (BA) would apply to the Appellant s case and presence of two negatives namely but excludes in Clause 1 and except when used by in Sub-Clause (BA) would bring a positive meaning to the fact that the said input service is available to the provider of output service who are specified in Sub-Clause (D) of Clause 105 of Section 65 of the Finance Act, 1994 who is by definition the insurer carrying on general insurance business in relation to General Insurance and providing service to a policy holder or to any other person. It has to be interpreted and understood in the manner two negatively worded statutes are to be understood. For example when Article 21 of the Constitution states no one shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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