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IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.VELMURUGAN, L.VICTORIA GOWRI
Commissioner of Service Tax, Central Excise and GST, Trichirappalli – Appellant
Versus
Lakshmi Vilas Bank, Karur – Respondent
| Table of Content |
|---|
| 1. overview of the case and background facts. (Para 2 , 3) |
| 2. arguments presented by both parties regarding cenvat credit. (Para 6 , 7) |
JUDGMENT :
P. VELMURUGAN, J.
1. These appeals have been filed by the Revenue, praying that the common Final Order No. 40832-40843/2020 dated 29.10.2020, passed by the Customs, Excise & Service Tax Appellate Tribunal, Chennai, be set aside, and that the Orders-in-Original passed by the Adjudicating Authority, which disallowed and recovered the CENVAT credit availed by the respondent-banks on the service tax paid for DICGC premium, be restored, together with interest and penalties.
2. The brief facts leading to the present appeal are that the respondent-banks, all insured institutions under the Deposit Insurance and Credit Guarantee Corporation Act , 1961 (“DICGC Act”), are mandatorily required to register with the DICGC and pay periodic premiums to insure the deposits accepted by them from the public. On such premium, service tax was payable and was in fact paid by the banks. The banks availed CENVAT credit of this service tax on the footing that the service constituted an “input service” under Rule 2(l) of the CENVAT Credit Rules , 2004.
The court confirmed that deposit insurance services provided by DICGC qualify as 'input services' under CENVAT Credit Rules, allowing banks to avail credit on related service tax, reinforcing establi....
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