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TMI Blog2025 (1) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... other cases including that of COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S. DILIP KUMAR AND COMPANY ORS. [ 2018 (7) TMI 1826 - SUPREME COURT (LB)] concerning strict interpretation of taxation statute was not considered, for which suggestion was made for a reference to a still Larger Bench comprising of Five Members but that was negated by the same Three Members Larger Bench with reasoning noted in the said decision including affirmation of the decision of the Larger Bench made in South Indian Bank Ltd. by Hon'ble Kerala High Court and Hon'ble Bombay High Court. The decision of the Larger Bench made in South Indian Bank that insurance service provided by the Deposit Insurance Corporation to the banks is an input service and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to protect deposits of customers up to Rs.1,00,000/- per customer/depositor. Against payment of insurance premium to the deposit insurance corporation, Service Tax as liveable were paid by the Appellant and it had availed CENVAT Credit on the said tax paid on such premium in accordance with provisions of the CENVAT Credit Rules, 2004. Respondent-Department questioned admissibility of the said CENVAT Credit on insurance premium paid on the ground that there was no nexus of the said credit with output services provided and it is not within the inclusive part of the definition of input services . Accordingly, show-cause notice for the period from April, 2012 to March, 2015 and from October, 2012 to March, 2014 were issued to Appellant M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued that not only Department had carried the said decision of the Larger Bench of this Tribunal passed in South Indian Bank case to the Hon'ble Kerala High Court which had dismissed the appeal of the Revenue and upheld the decision of the Larger Bench of this Tribunal but also Hon'ble Bombay High Court in the case of Commissioner of CGST Central Excise, Mumbai Central Commissionerate Vs. Yes Bank Limited and Indusind Bank Ltd. as reported in 2023 (9) TMI 1378 had upheld the decision of Larger Bench in South Indian Bank matter. His further submission is that Department had also clarified the matter earlier in their adjudication guide dated 20.06.2012 holding that entry 66(d) (n) does not cover within its ambit fixed or saving deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Larger Bench made in South Indian Bank Ltd. by Hon'ble Kerala High Court and Hon'ble Bombay High Court. We are, therefore, of the considered view that decision of the Larger Bench made in South Indian Bank that insurance service provided by the Deposit Insurance Corporation to the banks is an input service and CENVAT Credit on Service Tax paid by this service received by the banks from the Deposit Insurance Corporation can be availed by the banks for rendering output service, still holds the field. The reasoning on the basis of which such finding was made, was available in para 50 to 53 of the decisions of Larger Bench in South Indian Bank, which is reproduced below for better clarity: 50. It cannot, therefore, be doubte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to examine whether the service would be covered by the inclusive part of the definition. It has also been noted that the service is not excluded from the definition of input service . Hence in carrying forward the judicial precedent set by the Larger Bench of this Tribunal, that has been affirmed by Hon'ble High Court of Bombay and Hon'ble High Court of Kerala, the following order is passed. THE ORDER 6. Both the appeals are allowed and the order passed by the Commissioner of Service Tax-I, Mumbai vide Order-in-Original No. 73- 74/STC-I/SM/15-16 dated 28.01.2016 and order passed by the Commissioner of CGST CX, Mumbai East vide Order-in-Original No. 01/VR/COMMR/ME/2019-20 dated 08.04.2019 are hereby set aside with consequential reli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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