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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, J.
Commr. of Service Tax, Chennai -Appellant
Versus
Sundaram Bnp Paribas Trustee Co. Ltd. -Respondent
STAY ORDER NO. 357/2010 APPLICATION NO. ST/S/195/2010 APPEAL NO. ST/342/2010
Decided On : 05-08-2010
A.B. Niranjan Babu,P.C. Anand
I have heard both sides on the application for stay of operation of the order of Commissioner (Appeals) who has held that insurance cover for Directors and officers of the assessee-company which is meant for indemnification of the officials against any liability or claim which may arise during the course of any official action, is for official purpose which has nexus with their business activities so as to hold that the premium paid on the policies of insurance company will qualify as input service and that the assessees had correctly availed credit. Prima facie, the insurance cover has nexus with the business activity or output service, namely, "Trusteeship Services". I, therefore, see no reason to grant the prayer of the revenue. The stay application is rejected.
