Aviva Life Insurance Co. India Ltd. v. CST

CENVAT CREDIT RULES, 2004

--Cenvat credit--Service tax paid on import of services as service recipientAllowability----Where assessee being a service recipient of services based in India was discharging its service tax liability under reverse charge mechanism, it was entitled for the credit in respect of import of taxable services from outside India.--Assessee received services under the category of Business Auxiliary Services, Re-insurance Premium from foreign-based service provider. Revenue denied Cenvat credit in respect of import of taxable services from outside India. Held: Assessee being a service recipient of services and being based in India was liable to pay the service tax under reverse charge mechanism and as it was is discharging the said liability, it was entitled for the credit in respect of import of taxable services from outside India.

Cenvat Credit Rules, 2004 Rule 3