The Input Tax Credit is allowable on Insurance Services: CESTAT 

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed Cenvat Credit on Insurance Services. Some relevant finding of the tribunal is :

“As regards the other services such as group Medi-claim Insurance, Group personal accident insurance, insurance, motor car/vehicle insurance etc., I find that these are the services as mandated as per the factory Act for the safety of employees. Therefore, this cannot be said that the services were used for personal use. Every industry under statutory norms required to take group Medi-claim Insurance, Group personal accident insurance, insurance, motor car/vehicle insurance etc. from the insurance companies for which the payment of premium is paid by the assessee and the same is accounted in their books of accounts as expenditure. Therefore, all these services are in or in relation to manufacture of final products and under the business activities of the assessee. All the services have been considered as admissible Input services in various judgments, some of the judgments are cited below:- (a) CC & CCE, Guntur vs. Cholayil (P) Limited – 2013 (31) STR 29 (Tri.). (b) Lowe’s Services India Pvt. Limited vs. CCT, Bangalore – 2021 (052) GSTL 0070 (Tri. Bang.) (c) H.E.G. Limited vs. CCE, Raipur – 2011 (21) STR 300 (Tri. Del.) (d) Mafatlal Industries Limited vs. CCE & ST, Ahmd. – 2020 (43) GSTL 562 (Tri. Ahmd.).

From the above judgments, it can be seen that Cenvat credit is allowed on Insurance Services. As per my above observation and findings, I am of the view that appellant is entitled for the Cenvat credit on such services”