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TMI Blog2024 (7) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... a finding has been recorded by the Commissioner in the impugned order. In the absence of a license, a person cannot be considered as an insurance agent for treating the activities as insurance auxiliary services . The appellant had correctly discharged service tax on business support services and, therefore, once this service tax stands paid on the transaction, it is not open to the department to seek its recovery again. The reason stated by the appellant for discharging service tax under business support services is that the Bank had provided space to the appellant alongwith ancillary facilities such as chairs and desks and these infrastructural support services provided by the Bank are covered under business support services . This service is not liable to tax under Reverse Charge Mechanism. The demand that has been confirmed by the Commissioner under this head cannot be sustained. CENVAT Credit - input service - group health insurance for the employees - HELD THAT:- This issue has been decided in favour of the appellant by a Larger Bench of the Tribunal in Reliance Industries Ltd. vs. Commissioner of Central Excise and Service Tax, (LTU), Mumbai [ 2022 (4) TMI 1357 - CESTAT MUM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 12500/- per month per branch for each of the 300 selected branches. The appellant was required to ensure the presence and stationing of its authorized employees in the branch of the Bank; these employees would canvass insurance business but without interfering with the banking business of the Bank; and the appellant would utilize the space provided by the Bank as an insurance desk for the purposes of publicity and marketing its insurance products to the customers of the bank. 3. It has been stated that the Bank did not charge service tax on the amount payable by the appellant under the Memorandum up till March, 2009. From April 2009 onwards till June 2010, the Bank started charging service tax on the consideration payable by the appellant under the Memorandum and it was also deposited by the Bank. 4. The Bank, however, informed the appellant that the department had issued a show cause notice dated 08.12.2009 demanding service tax for the period prior to April 2009. Consequently, the Bank raised invoices on the appellant for demanding service tax payable for the period from May, 2006 to March, 2009, which amount the appellant claims that it paid. 5. The appellant, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of business support services . Since service tax already stands paid by the Bank, the same cannot be collected twice; (iv) The appellant has received business support services ; (v) Service tax on the provision of service stands deposited by the Bank under forward charge. Hence, the demand proposed against the appellant under Reverse Charge Mechanism would amount to double taxation; (vi) Denial of CENVAT credit on Group Health Insurance Services for employees, is untenable; (vii) There is no case of short accounting of insurance premium and thus, no differential tax is payable; and (viii) The extended period of limitation is not invokable nor penalty is imposable, interest is also not payable. 11. Ms. Jaya Kumari, learned authorized representative appearing for the department has, however, supported the impugned order and made the following submissions. (i) The solicitation of insurance business is taking place or is intended to take place whether it is through the Bank or through the authorized representative of the appellant. The said person i.e either the Bank or the authorized representative of the appellant automatically become the agent of the appellant because they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(54) of the Finance Act defines an insurance agent to have the same meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 [the Insurance Act]. 18. Section 65(105)(zl) of the Finance Act provides that taxable service would mean any service provided or to be provided to a policy holder (or any person) or insurer (including re-insurer), by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning general insurance business. 19. Section 2 (10) of the Insurance Act, defines an insurance agent in the following manner: insurance agent' means an insurance agent licensed under section 42 who receives or agrees to receive payment by way of commission or other remuneration in consideration of his soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance; 20. It, therefore, follows that the services rendered by an insurance agent, who is duly licensed under section 42 of the Insurance Act to be so, to an insurance company in relation to general insurance businesses are taxable as insurance auxiliary services . It is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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