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TMI Blog2024 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... y as an intermediary or as an agent. In case of insurance auxiliary service , the person acting as an intermediary or an agent receives commission from the insurance company since they act as an intermediary between the insurance company and the clients of the insurance company. In this case for the insurance company, the Appellant himself is the client. The individual members of the club are not the clients of the insurance company. The sale value minus purchase value of the policy would be the profit for the club - the Appellant has not provided any service under the category of insurance auxiliary service and set aside the confirmed demand of Rs.62,06,774/-. I rregular availment of CENVAT Credit, on the basis of documents which are not prescribed document under Rule 9(1) of Cenvat Credit Rules, 2004 - HELD THAT:- The Appellant is paying the Service Tax on the membership fee collected from the members. The insurance companies which are providing the insurance service, are charging the Service Tax. There is a direct nexus between the input services i.e. insurance service provided by the insurance companies and the output service provided by the Appellant in the form of club or ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the demand. Being aggrieved, the Appellant is before the Tribunal. 2. Shri J.P. Khaitan, Ld. Sr .Counsel appearing on behalf of the Appellant submits that the Revenue is in gross error in terming the service as Insurance Auxiliary Service . He takes us through the definition of Insurance Auxiliary Service as given under Section 65 of the Finance Act, 1994. SECTION 65. Definitions In this Chapter, unless the context otherwise requires, - ( 54 ) insurance agent has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938); ( 55 ) insurance auxiliary service means any service provided by an actuary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business or life insurance business and includes risk assessment, claim settlemet, survey and loss assessment; 3. In order to clarify the entity, he takes us through to definition of Club or Association as given under section 65(25a) of the Finance Act, 1994, which reads as under:- SECTION 65. Definitions In this Chapter, unless the context otherwise requires, - .. ( 25a ) club or association means any person or body of persons providing services, fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices Group has Insurable interest in its members for their welfare and benefit through medical insurance . This letter also states that the payment of the members will be paid by Medicare Services Club and claims naturally will be paid through them also (Page 20 of Volume-1 of Appeal compilation). 6. This is a case where group insurance is obtained by the Appellant for all its club Members. The Ld. Sr. Counsel also takes us through to the letter submitted by them to the Superintendent Audit Service Tax on 04.08.2008 clarifying the types of facilities being given by the club to their members and the kind of insurance policies being taken by the club for the welfare of the club members. This letter also specifies the additional benefits, ambulance facility, health check ups, ticket booking, electricity bill payment etc. being done on behalf of the members for the insurance policies taken by the members through the club. He also takes us through Bills raised by the Appellant wherein they are collecting the membership fees and also collecting Service Tax. Such Service Tax is being remitted to the Service Tax Department. In view of the foregoing factual situation as well as documentar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod April 2005 to March 2008 is hit by time bar provisions. He submits that the Appellant has taken the registration w.e.f. 16.05.2005 and they have been paying the Service Tax on the membership fee collected from the members. All the Cenvat Credit taken by them in respect of input services have also been shown in the ST-3 Returns. The complete details of membership fee collected, insurance premium paid to the insurance companies, Service Tax paid to the insurance companies, Service Tax received from the members etc. are all properly recorded in the Profit and Loss accounts and are also accounted for in their Income Tax Returns. In fact, the data towards the Cenvat Credit taken and membership fee collected etc. are all quantified by the Audit Department only from the books of account maintained by the Appellant. There is no allegation in the Show Cause Notice that the Appellants have not been maintaining proper books of account in terms of Income Tax Act, Companies Act or in terms of Central Excise Act, 1944/Finance Act, 1994. Therefore, in such a situation, the Appellant cannot be fastened with the allegation of suppression without any substantial corroborative evidence by the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r members would be the responsibility of the Appellant only. In case of a claim, the members file their claim with the club, who in turn takes up the matter with the insurance company and gets the claim settled for the members. In this case it is a straight case of the appellant acting independently by purchasing the policy and selling the policy. There is nothing to indicate from the show cause notice that the Appellant has received any commission from the insurance company as an intermediary or as an agent. In case of insurance auxiliary service , the person acting as an intermediary or an agent receives commission from the insurance company since they act as an intermediary between the insurance company and the clients of the insurance company. In this case for the insurance company, the Appellant himself is the client. The individual members of the club are not the clients of the insurance company. The sale value minus purchase value of the policy would be the profit for the club. Therefore, we hold that the Appellant has not provided any service under the category of insurance auxiliary service and set aside the confirmed demand of Rs.62,06,774/-. 12. Coming to the Cenvat Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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