𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗧𝗮𝘅 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝗳𝗼𝗿 𝗗𝗲𝗽𝗼𝘀𝗶𝘁 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "In the absence of a specific exemption, the service tax is applicable on the premium considered inclusive of tax. Thus, refund claims are not valid."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Deposit Insurance & Credit Guarantee Corporation (a subsidiary of the RBI). 𝗜𝘀𝘀𝘂𝗲: Whether the respondent is entitled to a refund on the service tax paid under protest. 𝗦𝗲𝗿𝘃𝗶𝗰𝗲: Provides insurance to banks, with premium payments made by the banks.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal noted that as per RBI guidelines, the premium charged could not exceed the stipulated amount. Thus, the premium paid is inclusive of tax, making the “cum tax” calculation appropriate. Additionally, the complexity of premium computation in the insurance sector means that tax inclusion likely would not alter the premium. No evidence was provided to dispute this.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼: 𝗧𝗶𝘁𝗹𝗲: Commissioner of CGST & Central Excise vs Deposit Insurance & Credit Guarantee Corporation 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢: 86306 OF 2021 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 14 July 2023 📜 This ruling clarifies that in regulated premium structures, service tax is computed as part of the gross amount paid, making separate refund claims invalid.