Held - The said issue was considered by the Larger Bench of the Tribunal in the case of M/s. South Indian Bank (supra) wherein it was held that insurance service provided by DICGC to the banks is an input service and the credit of Service Tax is eligible. In the appellant’s own case (supra), the Tribunal, for a different period, has followed the decision of the Larger Bench and held that the credit is eligible.

Following these decision.....

Held - Banks can avail CENVAT credit of the service tax paid by the banks on the premium amount paid to Deposit Insurance Corporation for the insurance service rendered by the Deposit Insurance Corporation to the banks.

This view has been taken by the Tribunal in State Bank of Bikaner. However, in ICICI Bank a contrary view was taken. For all the reasons stated above, it is not possible to accept the vie.....