Cholamandalam MS General Insurance Co. Ltd. v. CCE, ST

CENVAT CREDIT RULES, 2004

--Cenvat Credit--Input serviceRepair services provided by Authorized Service Station to insured vehicles--Eligibility of--Cenvat Credit of service tax paid on repair services provided by Authorized Service Station to insured vehicles was allowed as the same fell within the definition of 'input service'.--Assessee-company was engaged in providing insurance services. Revenue denied Cenvat Credit of service tax paid on repair services provided by Authorized Service Station to insured vehicles as the same was not considered within the definition of the input service.Held: In view of Tribunal decision in case of United India Insurance Co. Ltd. v. CCE & ST LTU, Chennai in (ST/412/2011) in [Final Order No. 41708/2018, dt. 1-6-2018], the general insurance service provided by the assessee basically insured the vehicle against damages and such service could be provided to owner only by way of reimbursement of the repair charges. Service tax paid on the bill of the Authorized Service Station was to be considered within the definition of the input service, which was used for providing the output service of the vehicle insurance.