w w w . L a w y e r S e r v i c e s . i n



Commissioner of Service Tax V/S ERNST and Young Associates LLP


Company & Directors' Information:- ERNST & YOUNG PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74120WB2008PTC121768

Company & Directors' Information:- ERNST AND YOUNG INDIA PRIVATE LIMITED [Active] CIN = U74140DL2002PTC116314

Company & Directors' Information:- ERNST AND YOUNG PRIVATE LIMITED [Not available for efiling] CIN = U74140MH1995PTC095619

Company & Directors' Information:- H M I ASSOCIATES LLP [] CIN = AAI-5321

Company & Directors' Information:- J P M G & ASSOCIATES LLP [Active] CIN = AAY-7022

Company & Directors' Information:- P K C & ASSOCIATES LLP [] CIN = AAE-8464

Company & Directors' Information:- B P ASSOCIATES LLP [] CIN = AAH-4492

Company & Directors' Information:- V G & ASSOCIATES LLP [Active] CIN = AAM-0502

Company & Directors' Information:- R R M & ASSOCIATES LLP [] CIN = AAK-7615

Company & Directors' Information:- A. K. A. S. & ASSOCIATES LLP [] CIN = AAI-4298

Company & Directors' Information:- D T S & ASSOCIATES LLP [Active] CIN = AAP-3711

Company & Directors' Information:- A AND A ASSOCIATES LLP [Active] CIN = AAM-6430

Company & Directors' Information:- G S A & ASSOCIATES LLP [Active] CIN = AAS-8863

Company & Directors' Information:- C B V & ASSOCIATES LLP [Active] CIN = AAS-3514

Company & Directors' Information:- N A C AND ASSOCIATES LLP [Active] CIN = AAC-2458

Company & Directors' Information:- ERNST INDIA PRIVATE LIMITED [Strike Off] CIN = U74140MH2003PTC139449

Company & Directors' Information:- M O S & ASSOCIATES LLP [Active] CIN = AAC-9727

Company & Directors' Information:- M N T AND ASSOCIATES LLP [Active] CIN = AAF-4522

Company & Directors' Information:- S A ASSOCIATES LLP [] CIN = AAJ-4660

Company & Directors' Information:- C A S N & ASSOCIATES LLP [Active] CIN = AAN-0907

Company & Directors' Information:- N G C & ASSOCIATES LLP [Active] CIN = AAT-7262

Company & Directors' Information:- J N J & ASSOCIATES LLP [Active] CIN = AAV-1665

Company & Directors' Information:- P N K J & ASSOCIATES LLP [Active] CIN = AAY-5916

Company & Directors' Information:- S AND A ASSOCIATES LLP [Active] CIN = AAT-0705

Company & Directors' Information:- V C A J & ASSOCIATES LLP [Active] CIN = AAW-6402

Company & Directors' Information:- M B AND ASSOCIATES LLP [] CIN = AAI-2127

Company & Directors' Information:- YOUNG AND ASSOCIATES PRIVATE LIMITED [Strike Off] CIN = U51109DL1998PTC096379

Company & Directors' Information:- S V N D & ASSOCIATES LLP [] CIN = AAJ-4926

Company & Directors' Information:- A R A J & ASSOCIATES LLP [Active] CIN = AAO-8042

Company & Directors' Information:- N A R A D AND ASSOCIATES LLP [Active] CIN = AAT-6165

Company & Directors' Information:- H. J. ASSOCIATES LLP [] CIN = AAI-0528

Company & Directors' Information:- D K Y & ASSOCIATES LLP [] CIN = AAF-9630

Company & Directors' Information:- G A M S & ASSOCIATES LLP [Active] CIN = AAM-7552

Company & Directors' Information:- A M T ASSOCIATES LLP [] CIN = AAE-0642

Company & Directors' Information:- P M H & ASSOCIATES LLP [] CIN = AAG-0165

Company & Directors' Information:- K E Y M E N & ASSOCIATES LLP [Active] CIN = AAM-6360

Company & Directors' Information:- D R ASSOCIATES LLP [Active] CIN = AAM-8713

Company & Directors' Information:- C D P K & ASSOCIATES LLP [Active] CIN = AAV-4006

Company & Directors' Information:- S S R A & ASSOCIATES LLP [] CIN = AAE-9117

Company & Directors' Information:- K M R & ASSOCIATES LLP [] CIN = AAK-1385

Company & Directors' Information:- K M R K & ASSOCIATES LLP [Active] CIN = AAS-8371

Company & Directors' Information:- P S N V & ASSOCIATES LLP [Active] CIN = AAS-8466

Company & Directors' Information:- P F A AND ASSOCIATES LLP [Active] CIN = AAT-0099

Company & Directors' Information:- R G R K AND ASSOCIATES LLP [Active] CIN = AAT-1718

Company & Directors' Information:- K C P L AND ASSOCIATES LLP [Active] CIN = AAB-9086

Company & Directors' Information:- V U AND ASSOCIATES LLP [Defunct] CIN = AAC-2218

Company & Directors' Information:- V G K S & ASSOCIATES LLP [Defunct] CIN = AAC-5661

Company & Directors' Information:- H A D & ASSOCIATES LLP [Under Process Of Strike Off] CIN = AAC-5738

Company & Directors' Information:- S N D K & ASSOCIATES LLP [] CIN = AAD-3828

Company & Directors' Information:- T M R & ASSOCIATES LLP [] CIN = AAF-3841

Company & Directors' Information:- S P D R & ASSOCIATES LLP [] CIN = AAG-4261

Company & Directors' Information:- V & M ASSOCIATES LLP [] CIN = AAG-5854

Company & Directors' Information:- K N O T S & ASSOCIATES LLP [] CIN = AAG-6678

Company & Directors' Information:- U V T & ASSOCIATES LLP [] CIN = AAG-7716

Company & Directors' Information:- V V M B & ASSOCIATES LLP [] CIN = AAH-1942

Company & Directors' Information:- B C S AND ASSOCIATES LLP [] CIN = AAH-5748

Company & Directors' Information:- S K G N & ASSOCIATES LLP [] CIN = AAH-8620

Company & Directors' Information:- G S G & ASSOCIATES LLP [] CIN = AAI-0168

Company & Directors' Information:- S G M & ASSOCIATES LLP [] CIN = AAI-0262

Company & Directors' Information:- D P S V & ASSOCIATES LLP [] CIN = AAI-1625

Company & Directors' Information:- M K R S & ASSOCIATES LLP [] CIN = AAI-3441

Company & Directors' Information:- K R G B & ASSOCIATES LLP [] CIN = AAI-4254

Company & Directors' Information:- N S C P & ASSOCIATES LLP [] CIN = AAI-5085

Company & Directors' Information:- B D R S & ASSOCIATES LLP [] CIN = AAI-6248

Company & Directors' Information:- G & C ASSOCIATES LLP [] CIN = AAJ-1345

Company & Directors' Information:- D S S M & ASSOCIATES LLP [] CIN = AAJ-5771

Company & Directors' Information:- A P C & ASSOCIATES LLP [] CIN = AAJ-8120

Company & Directors' Information:- Y P K & ASSOCIATES LLP [] CIN = AAJ-8331

Company & Directors' Information:- J S P L & ASSOCIATES LLP [] CIN = AAJ-8565

Company & Directors' Information:- G C R A & ASSOCIATES LLP [] CIN = AAJ-8926

Company & Directors' Information:- R G S K & ASSOCIATES LLP [] CIN = AAJ-9417

Company & Directors' Information:- K K S & B SERVICE LLP [] CIN = AAL-3143

Company & Directors' Information:- A R D M & ASSOCIATES LLP [] CIN = AAL-4301

Company & Directors' Information:- R D J & ASSOCIATES LLP [] CIN = AAL-5361

Company & Directors' Information:- C A D S & ASSOCIATES LLP [] CIN = AAL-8732

Company & Directors' Information:- S N N S & ASSOCIATES LLP [] CIN = AAL-9140

Company & Directors' Information:- P V R N & ASSOCIATES LLP [Active] CIN = AAM-1316

Company & Directors' Information:- K M K & ASSOCIATES LLP [Active] CIN = AAM-3215

Company & Directors' Information:- G S A P & ASSOCIATES LLP [Active] CIN = AAM-3912

Company & Directors' Information:- V J M & ASSOCIATES LLP [Active] CIN = AAM-6546

Company & Directors' Information:- S R J B & ASSOCIATES LLP [Active] CIN = AAN-1904

Company & Directors' Information:- A F & ASSOCIATES LLP [Active] CIN = AAN-4408

Company & Directors' Information:- M H A & ASSOCIATES LLP [Active] CIN = AAN-3839

Company & Directors' Information:- G S J & ASSOCIATES LLP [Active] CIN = AAO-6168

Company & Directors' Information:- V N V R & ASSOCIATES LLP [Active] CIN = AAO-4407

Company & Directors' Information:- V P H & ASSOCIATES LLP [Active] CIN = AAP-0804

Company & Directors' Information:- G R A H & ASSOCIATES LLP [Active] CIN = AAP-3853

Company & Directors' Information:- D H K & ASSOCIATES LLP [Active] CIN = AAP-8853

Company & Directors' Information:- S Y G AND ASSOCIATES LLP [Active] CIN = AAQ-4640

Company & Directors' Information:- J N M S & ASSOCIATES LLP [Active] CIN = AAR-0202

Company & Directors' Information:- K N N & ASSOCIATES LLP [Active] CIN = AAR-5165

Company & Directors' Information:- H AND M ASSOCIATES LLP [Active] CIN = AAR-5348

Company & Directors' Information:- K A A G AND ASSOCIATES LLP [Active] CIN = AAS-5500

Company & Directors' Information:- J A G S & ASSOCIATES LLP [Active] CIN = AAS-6798

Company & Directors' Information:- K S B K & ASSOCIATES LLP [Active] CIN = AAT-2673

Company & Directors' Information:- R N G A AND ASSOCIATES LLP [Active] CIN = AAT-8224

Company & Directors' Information:- R H S S AND ASSOCIATES LLP [Active] CIN = AAT-8514

Company & Directors' Information:- K D N & ASSOCIATES LLP [Active] CIN = AAU-4497

Company & Directors' Information:- M B S K & ASSOCIATES LLP [Active] CIN = AAV-1095

Company & Directors' Information:- S N G S & ASSOCIATES LLP [Active] CIN = AAV-6566

Company & Directors' Information:- P S S V & ASSOCIATES LLP [Active] CIN = AAV-8596

Company & Directors' Information:- G S R V AND ASSOCIATES LLP [Active] CIN = AAV-9051

Company & Directors' Information:- A S S K & ASSOCIATES LLP [Active] CIN = AAW-7993

Company & Directors' Information:- S V T V P & ASSOCIATES LLP [Active] CIN = AAX-0589

Company & Directors' Information:- R C S & ASSOCIATES LLP [Active] CIN = AAX-1729

Company & Directors' Information:- K A A AND ASSOCIATES LLP [Active] CIN = AAX-5969

Company & Directors' Information:- P N J ASSOCIATES LLP [Active] CIN = AAX-7773

Company & Directors' Information:- M I S & ASSOCIATES LLP [Active] CIN = AAY-0203

Company & Directors' Information:- V E N S AND ASSOCIATES LLP [Active] CIN = AAY-1760

Company & Directors' Information:- S A G A AND ASSOCIATES LLP [] CIN = AAF-9395

Company & Directors' Information:- K P T & ASSOCIATES LLP [] CIN = AAJ-6274

Company & Directors' Information:- M P G & ASSOCIATES LLP [] CIN = AAI-8478

Company & Directors' Information:- J B T M & ASSOCIATES LLP [Active] CIN = AAN-7609

Company & Directors' Information:- P S B & ASSOCIATES LLP [Active] CIN = AAN-8632

Company & Directors' Information:- V C V R & ASSOCIATES LLP [Active] CIN = AAR-3134

Company & Directors' Information:- S V A G & ASSOCIATES LLP [Active] CIN = AAR-5379

Company & Directors' Information:- K P G A AND ASSOCIATES LLP [Active] CIN = AAW-9561

Company & Directors' Information:- H D M & ASSOCIATES LLP [Active] CIN = AAX-5704

Company & Directors' Information:- N R P S & ASSOCIATES LLP [Active] CIN = AAS-8672

Company & Directors' Information:- A M C & ASSOCIATES LLP [Active] CIN = AAC-3086

Company & Directors' Information:- B S H D & ASSOCIATES LLP [] CIN = AAD-2588

Company & Directors' Information:- A P V J & ASSOCIATES LLP [] CIN = AAD-5950

Company & Directors' Information:- S H B & ASSOCIATES LLP [] CIN = AAD-9012

Company & Directors' Information:- J V P D & ASSOCIATES LLP [] CIN = AAE-4320

Company & Directors' Information:- K V B A & ASSOCIATES LLP [] CIN = AAE-9350

Company & Directors' Information:- B & S ASSOCIATES LLP [] CIN = AAI-3129

Company & Directors' Information:- P T L ASSOCIATES LLP [] CIN = AAI-7390

Company & Directors' Information:- A N K D & ASSOCIATES LLP [] CIN = AAI-9071

Company & Directors' Information:- B S A P & ASSOCIATES LLP [] CIN = AAK-2595

Company & Directors' Information:- A R N K AND ASSOCIATES LLP [] CIN = AAK-5067

Company & Directors' Information:- J S P M & ASSOCIATES LLP [] CIN = AAK-5997

Company & Directors' Information:- V N A & ASSOCIATES LLP [Active] CIN = AAL-8494

Company & Directors' Information:- R S J M & ASSOCIATES LLP [Active] CIN = AAN-1282

Company & Directors' Information:- R S R G & ASSOCIATES LLP [Active] CIN = AAN-5642

Company & Directors' Information:- N M V A & ASSOCIATES LLP [Active] CIN = AAO-1493

Company & Directors' Information:- B S A & ASSOCIATES LLP [Active] CIN = AAP-4289

Company & Directors' Information:- R V P S AND ASSOCIATES LLP [Active] CIN = AAQ-0991

Company & Directors' Information:- N B P B & ASSOCIATES LLP [Active] CIN = AAQ-1715

Company & Directors' Information:- S V N D M & ASSOCIATES LLP [Active] CIN = AAQ-3378

Company & Directors' Information:- F A A & ASSOCIATES LLP [Active] CIN = AAR-0569

Company & Directors' Information:- P E R C H & ASSOCIATES LLP [Active] CIN = AAR-4719

Company & Directors' Information:- S R W M & ASSOCIATES LLP [Active] CIN = AAR-4779

Company & Directors' Information:- G G A M & ASSOCIATES LLP [Active] CIN = AAS-0263

Company & Directors' Information:- A F W & ASSOCIATES LLP [Active] CIN = AAS-6372

Company & Directors' Information:- K V A S & ASSOCIATES LLP [Active] CIN = AAT-4587

Company & Directors' Information:- A K U V AND ASSOCIATES LLP [Active] CIN = AAU-0585

Company & Directors' Information:- M G H K & ASSOCIATES LLP [Active] CIN = AAU-2630

Company & Directors' Information:- P R U V N AND ASSOCIATES LLP [Active] CIN = AAW-1963

Company & Directors' Information:- D J H R & ASSOCIATES LLP [Active] CIN = AAW-4947

Company & Directors' Information:- Y & M ASSOCIATES LLP [Active] CIN = AAY-7101

Company & Directors' Information:- S S A K AND ASSOCIATES LLP [Active] CIN = AAN-6023

Company & Directors' Information:- V V P & ASSOCIATES LLP [] CIN = AAE-7243

Company & Directors' Information:- R T G S & ASSOCIATES LLP [Active] CIN = AAS-8328

Company & Directors' Information:- M C N & ASSOCIATES LLP [] CIN = AAI-4427

Company & Directors' Information:- S S M G & ASSOCIATES LLP [Active] CIN = AAU-3604

Company & Directors' Information:- A K G J AND ASSOCIATES LLP [Active] CIN = ABA-0192

Company & Directors' Information:- B R A N D & ASSOCIATES LLP [Active] CIN = AAM-0765

Company & Directors' Information:- S U & ASSOCIATES LLP [Active] CIN = AAM-9499

Company & Directors' Information:- J B A AND ASSOCIATES LLP [Active] CIN = AAS-6299

Company & Directors' Information:- R C A S AND ASSOCIATES LLP [Active] CIN = AAT-5693

Company & Directors' Information:- A P A J & ASSOCIATES LLP [Active] CIN = AAU-2997

Company & Directors' Information:- A P N S & ASSOCIATES LLP [Active] CIN = AAU-3323

Company & Directors' Information:- R M AND ASSOCIATES LLP [] CIN = AAI-5809

Company & Directors' Information:- J D B ASSOCIATES LLP [] CIN = AAK-3011

Company & Directors' Information:- J & J ASSOCIATES LLP [] CIN = AAL-5688

Company & Directors' Information:- S K N K AND ASSOCIATES LLP [Active] CIN = AAM-1499

Company & Directors' Information:- N G K A & ASSOCIATES LLP [Active] CIN = AAN-6685

Company & Directors' Information:- M S N A & ASSOCIATES LLP [Active] CIN = AAR-8776

Company & Directors' Information:- D G V K & ASSOCIATES LLP [Active] CIN = AAS-3437

Company & Directors' Information:- H N K & ASSOCIATES LLP [Active] CIN = AAT-6130

Company & Directors' Information:- N S N D & ASSOCIATES LLP [Active] CIN = AAT-6253

Company & Directors' Information:- K M P C & ASSOCIATES LLP [Active] CIN = AAW-4096

Company & Directors' Information:- A D D S & ASSOCIATES LLP [Active] CIN = AAX-4700

Company & Directors' Information:- T P R H & ASSOCIATES LLP [Active] CIN = AAY-1129

Company & Directors' Information:- A J S N & ASSOCIATES LLP [Active] CIN = AAY-4471

Company & Directors' Information:- S V AND ASSOCIATES LLP [Active] CIN = AAY-7910

Company & Directors' Information:- I D B & ASSOCIATES LLP [] CIN = AAL-6160

Company & Directors' Information:- R S K & ASSOCIATES LLP [] CIN = AAD-7811

Company & Directors' Information:- R AND D ASSOCIATES LLP [] CIN = AAI-0280

Company & Directors' Information:- S G D G & ASSOCIATES LLP [] CIN = AAI-3248

Company & Directors' Information:- K N V Y & ASSOCIATES LLP [] CIN = AAI-3340

Company & Directors' Information:- C & A ASSOCIATES LLP [] CIN = AAI-6853

Company & Directors' Information:- M AND G ASSOCIATES LLP [] CIN = AAK-1004

Company & Directors' Information:- V U S A & ASSOCIATES LLP [] CIN = AAK-5628

Company & Directors' Information:- P N D J & ASSOCIATES LLP [Active] CIN = AAM-2212

Company & Directors' Information:- V G P G & ASSOCIATES LLP [Active] CIN = AAP-1072

Company & Directors' Information:- P M V S AND ASSOCIATES LLP [Active] CIN = AAQ-6554

Company & Directors' Information:- P D S C & ASSOCIATES LLP [Active] CIN = AAR-1773

Company & Directors' Information:- W S & ASSOCIATES LLP [Active] CIN = AAR-2687

Company & Directors' Information:- H J P & ASSOCIATES LLP [Active] CIN = AAS-6418

Company & Directors' Information:- C V V & ASSOCIATES LLP [Active] CIN = AAS-6490

Company & Directors' Information:- A D A P T & ASSOCIATES LLP [Active] CIN = AAT-4553

Company & Directors' Information:- D M N T & ASSOCIATES LLP [Active] CIN = AAT-7636

Company & Directors' Information:- J J S ASSOCIATES LLP [Active] CIN = AAV-4512

Company & Directors' Information:- V S B & ASSOCIATES LLP [Active] CIN = AAW-8114

Company & Directors' Information:- H A P G & ASSOCIATES LLP [Active] CIN = AAW-8918

Company & Directors' Information:- P N R A J & ASSOCIATES LLP [Active] CIN = AAT-2295

Company & Directors' Information:- V C A N & ASSOCIATES LLP [] CIN = AAK-6976

Company & Directors' Information:- R A B H AND ASSOCIATES LLP [Active] CIN = AAS-2835

Company & Directors' Information:- V K A S AND ASSOCIATES LLP [] CIN = AAJ-9035

Company & Directors' Information:- N B C & ASSOCIATES LLP [] CIN = AAK-0690

Company & Directors' Information:- T A M AND ASSOCIATES LLP [Active] CIN = AAP-3481

Company & Directors' Information:- P P S S & ASSOCIATES LLP [Active] CIN = AAY-0758

Company & Directors' Information:- R K C & ASSOCIATES LLP [Active] CIN = AAY-4235

Company & Directors' Information:- K C M A AND ASSOCIATES LLP [Active] CIN = AAT-3571

    Appeal No. ST/60470/2017 (Arising out of Order-in-Appeal No.51/ST/APPEAL-II/MK/GGM/2017 Dated: 28.3.2017 Passed by the Commissioner of Service Tax (Appeals-II), Gurgaon) and Final Order No. 62020/2017

    Decided On, 26 October 2017

    At, Customs Excise Service Tax Appellate Tribunal Chandigarh Bench

    By, THE HONORABLE JUSTICE: DEVENDER SINGH
    By, MEMBER

    For Petitioner: Satya Pal, A.R And For Respondents: Vasudha Budeja, CA



Judgment Text


1. The Revenue is in appeal against the order of the Commissioner (Appeals) wherein the Ld. Commissioner (Appeals) has allowed the refund of Service Tax of Rs. 9,64,126/- paid on input service of professional indemnity insurance service by the respondent namely Ernst And Young Associates LLP. The period involved in this case is from April, 2014 to June, 2015. The refund was rejected by the adjudicating authority on the ground that it had not direct nexus with output service. The Ld. Commissioner (Appeals) allowed the refund on the ground that the professional indemnity insurance policy is for insuring the business risks and has nexus with output service. Aggrieved from the same, the Revenue has filed this appeal.

2. Ld. AR submits that the period involved is after 01.04.2011 and the words activity relating to business have been omitted from the definition of input service and hence in order to qualify as input service, the same should be used for providing output service and the impugned service cannot be said to have been used for providing output service. He also contended that the impugned service is used after the provision of output service by the assessee.

3. Ld. CA for the respondent relies upon the following case law in which the issue has been decided in their favour:

1. CST, Delhi-IV Vs. Ernst and Young Associates LLP vide Final Order No. 61916/2017 dt. 06.10.2017 (2017-VIL-863-CESTAT-CHD-ST).

She also relied upon the following decisions:-

1. M/s Stock Holding Corporation of India Ltd. Vs. Commissioner of Service Tax, Mumbai-II -.

2. Satyam Computer Services Ltd. Vs. Commissioner of Service Tax : 2011 (22) STR 73 (Tri. Bang.).

4. Heard the parties and perused the record.

5. The short issue involved in this appeal is whether the professional indemnity service used by the assessee, who are providing consultancy in taxation and audit service can be considered as input service in terms of definition of input service in the Cenvat Credit Rules.

6. I find that the issue is no longer res integra and has been decided in the favour of respondent in their own case in CST, Delhi-IV Vs. Ernst and Young Associates LLP (supra) wherein this Tribunal held as below:-

"5. I find that the main contention of the Revenue is that after amendment of the definition of input service from 1.4.2011, the word the activity relating to business has been deleted from the definition of input service and the impugned service cannot be said to be directly used for providing any output service. It is also argued that the impugned service is not covered by the inclusive part of the definition and it is used only when output service is complete and delivered.

6. On the question as to whether the professional indemnity insurance service has nexus with output service, I completely agree with the analysis of the Commissioner (Appeals) in the following paragraphs extracted from the Order-in-Appeal:

"The Definition of Input Service Rule 2 (I) of Cenvat Credit Rules, 2004 defines the Input Servicew.e.f.01.07.2012.

"(I) Input service means any service,

(i) used by a provided of taxable service for providing an output service; or

(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transpiration of inputs or capital goods and outward transportation upto the place of removal but excludes services, -

(A) specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of Section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for-

(a) construction of a building or a civil structure or part thereof; or

(b) laying of founding or making of structures for support of capital goods, except for the provision of one or more of the specified services; or

(B) specified in sub-clauses (d), (o), (zo) and (zzzzj) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor vehicle except when used for the provision of taxable series for which the credit on motor vehicle is available as capital goods; or

(C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits excluded to employees on vacation such as leave or home travel concession, when such services are used primarily for personal use or consumption of any employee",

Definition of Input service for different relevant period makes it amply clear that in order to quality as Input service, any service used by a provider of output service should satisfy the following conditions: It should fall under main part or inclusive part of the definition of input service. It should not be covered in the exclusion part of the definition.

Further, professional indemnity insurance is form of liability insurance that helps in safeguarding the professional advisor and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such civil lawsuit. The coverage focuses on alleged failure to perform, on the part of financial loss caused by error or omissions in the service or product sold by the policy holder & is in force during the period specified in policy, for the coverage of output service.

The appellant is engaged in providing consultancy services to its clientele by way of reliable deliverables. Thus, I find that professional indemnity insurance service have nexus with the output service and is covered under definition of input service.

7. I find that the adjudicating authority has allowed refund for general insurance service for employees, equipments and property, for insuring the company against unforeseen circumstance. On the same analogy, the professio

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nal indemnity insurance service has to be viewed in the context of providing the consultancy or other professional services, where the assessee has to safeguard itself against unforeseen legal damages/costs due to negligence or other bonafide mistakes of the employees/partners. Hence, the professional indemnity insurance service is an essential ingredient for providing the output service and has direct nexus with the providing of output service." Following the above judgment of the Tribunal in the appellants' own case, I find that there is no infirmity in the order of the Ld. Commissioner (Appeals) and the appeal filed by the Revenue is not sustainable. In the result, the appeal filed by the Revenue is dismissed.
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