GENERAL
INSURANCE BUSINESS
CESTAT,
Karnataka
Government Insurance Department
v.
Commissioner
of Central Excise , Bangalore
DR.
S.L. PEERAN, JUDICIAL MEMBER
AND
T.K. JAYARAMAN, TECHNICAL MEMBER
FINAL
ORDER NO. 878 OF 2007
APPEAL
NO. 1/ST OF 2003
July
31, 2007
Section 65 of
the Finance Act, 1994, read with section 36 of the General Insurance Business
(Nationalisation) Act, 1972 - General insurance business - Assessee claimed
that it was carrying on general insurance business as for exemption granted
under section 36 of 1972 Act and, therefore, it was not liable to pay service
tax - Whether reference made by assessee
for exemption under section 36 of 1972
Act was not applicable for levy of
service tax under 1994 Act - Held yes
[Para 4]
Section 73 of
the Finance Act, 1994 - Recovery of service tax not levied or paid or short
levied or short paid or erroneously refunded - Assessee had failed to register
itself for payment of service tax on activity of motor insurance carried out by
it - Authorities demanded service tax from assessee by invoking longer period
of limitation - Assessee challenged invocation of longer period - Whether since
assessee had - Neither obtained any clarification from Central Government nor
it had approached Central Government for granting exemption under Act and
further it had not declared details under section 73, plea raised by assessee
on time bar was to be rejected - Held, yes [Para 4]