Cenvat Credit on Insurance for Fire and Special Perils Policy cannot be Denied merely because of Non-registration Premises: CESTAT rules in Favour of Deloitte Haskins [Read Order]

In a ruling in favour of Deloitte Haskins & Sells, the Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that Cenvat Credit on insurance for fire and special perils policy cannot be denied merely because of non-registration premises.

The Cenvat Credit relating to insurance obtained for the “Fire and Special Perils Policy" for the equipment and materials installed in the appellant’s office premises has been sought to be denied, as the office was registered with the appellant only on 20.06.2013. It is also sought to be denied on the ground that the said office is also used by M/s C.C. Chokshi Chartered Accountant. 

 It was found that for the availment of Cenvat Credit registration of the premises is unnecessary. There is no such requirement in law that to avail insurance of the said premises have to be registered with the appellant. It is not disputed by the revenue that the appellant is using the said premises and it is also not disputed that the appellant has installed equipment in the said premises.

“With this circumstance, the Cenvat Credit of insurance would be admissible to the appellants. As far as the use of the said office by M/s C C Chokshi Chartered Accountant is concerned, revenue has failed to provide any proof to substantiate its claim.”, the two-member bench of Mr Ramesh Nair, Member (Judicial) and Mr Raju, Member (Technical) held.

While allowing the appeal, the CESTAT held that the benefit of Cenvat Credit on insurance services cannot be denied.

To Read the full text of the Order CLICK HERE

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