CENVAT CREDIT RULES, 2004

Rule 2(l)

Cenvat credit - Input service - Difference of Opinion among two benches -

Assessee filed this appeal CESTAT against Order-in-Appeal No. HYD-SVTAXHYD- AD1-007-17-18, DATED 01-2-2018. The issue was regarding eligibility to avail CENVAT credit post 1-3-2011 of the service tax paid on various insurance policies taken by the assessee in respect of various employees working at site. Held: There are two views expressed by Tribunal on this point. In the case of Hydus Technologies India (P) Ltd. (2017(52)S.T.R 186 (Tri.-Hyd) : 2017 TaxPub(ST) 0222 (CESTAT-Hyd)), Bench had taken a view that assessee can avail CENVAT credit of service tax paid on various insurance services post 1-4-2011. At the same time, in case of Ganesan Builders Ltd. v. CST, Chennai-II in Final Order No. A/40713/2017, dt. 17-5-2017 : 2017 TaxPub(ST) 1227 (CESTAT-Chen), in Appeal No. ST/42100/2016, Tribunal at Chennai took a diagonally opposite view wherein, while interpreting the same clause of the definition of Input services, it was held that CENVAT credit cannot be allowed. Since both Benches were of the same strength and there being diagonally opposite views expressed, matter was referred to CESTAT for constituting Larger Bench to arrive at a conclusion.

REFERRED : M/s. Ganesan Builders Ltd. v. Commissioner of Service Tax Final Order No. A/40713/2017, dt. 17-5-2017 : 2017 TaxPub(ST) 1227 (CESTAT-Chen), M/s. Hydus Technologies India (P) Ltd. v. CCE, C & ST 2017(52)S.T.R 186 (Tri.-Hyd) : 2017 TaxPub(ST) 0222 (CESTAT-Hyd),

FAVOUR : Matter remanded

A.Y. :

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