The Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed an appeal by M\/s. Royal Sundaram Alliance Insurance Company Limited, ruling that credit cannot be denied on grounds not raised in the Show Cause Notice. The dispute arose over the denial of CENVAT credit on service tax paid for vehicle repair claims for the period April 2011 to September 2011. The department had denied credit, citing an amendment to the definition of “input services” in the CENVAT Credit Rules, 2004, which excluded services related to motor vehicles.<\/p>\n
The Appellant argued that the amendment was prospective and did not apply to services received before April 2011. The Counsel for the Appellant, R. Charulatha, contended that the amendment was curative and retrospective in nature, making authorized service stations credit always available. The Appellant relied on favourable Tribunal decisions in similar cases, stating that vehicle repair services constitute input services as they enable the company to fulfill its insurance obligations.<\/p>\n
The Counsel for the Respondent, Rajini Menon, argued that the invoices were issued to individual vehicle owners and not to the insurer, and therefore, the Appellant cannot claim CENVAT credit. The Respondent also argued that after the amendment to the definition of “input service” dated 01.04.2011, authorized station services were specifically excluded, rendering the Appellant ineligible for CENVAT credit on such services for the relevant period.<\/p>\n
The Tribunal, consisting of Technical Member, Vasa Seshagiri Rao, heard and reviewed the matter challenged by the Appellant. The Tribunal held that the amendment to the “input services” definition was prospective in nature and agreed with the appellant. The Tribunal stated that the adjudicating authorities had exceeded the scope of the Show Cause Notice by introducing new allegations, violating principles of natural justice.<\/p>\n
The Tribunal also found that the services in question were delivered to the appellant on or before 31.03.2011, and therefore, the amended definition of “input service” did not apply to these transactions. The Tribunal acknowledged that the issue of invoices being in the name of insured individuals was settled in favour of the appellant by earlier decisions.<\/p>\n
Ultimately, the Appeal was allowed with consequential reliefs, and the impugned Order in-Appeal dated 01.06.2015, along with the demand for CENVAT credit, interest, and penalties, was set aside. The Order was pronounced in open court on 11.11.2025. The decision is a significant victory for the Appellant, as it clarifies that credit cannot be denied on grounds not raised in the Show Cause Notice and that the amendment to the “input services” definition is prospective in nature.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Chennai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed an appeal by M\/s. Royal Sundaram Alliance Insurance Company Limited, ruling that credit cannot be denied on grounds not raised in the Show Cause Notice. The dispute arose over the denial of CENVAT credit on service tax paid for vehicle […]<\/p>\n","protected":false},"author":1,"featured_media":221254,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,32],"tags":[],"class_list":["post-222631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-royal-sundaram"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg","jetpack_shortlink":"https:\/\/wp.me\/p9ibIB-VUP","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":222534,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/28\/royal-sundaram-upgrades-core-system-with-firstgen-v7-and-nip-v3-for-digital-transformation\/","url_meta":{"origin":222631,"position":0},"title":"Royal Sundaram upgrades core system with FirstGen v7 and NIP v3 for digital transformation","author":"Team Small News","date":"December 28, 2025","format":false,"excerpt":"Royal Sundaram General Insurance (RSGI) has completed a major core systems upgrade as part of its digital transformation agenda. The 11-month program involved the deployment of FirstGen v7 and the NextGen Integration Platform (NIP v3) from FirstApex Insurance Systems. This upgrade introduces low-code\/no-code configurability, automated deployment pipelines, secure integrations, and\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222648,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/11\/royal-sundaram-celebrates-a-quarter-century-of-delivering-reliability-compassion-and-innovative-insurance-solutions\/","url_meta":{"origin":222631,"position":1},"title":"Royal Sundaram Celebrates a Quarter Century of Delivering Reliability, Compassion, and Innovative Insurance Solutions","author":"Team Small News","date":"January 11, 2026","format":false,"excerpt":"Royal Sundaram, a private general insurer, is celebrating its 25-year milestone in the Indian insurance industry. Since its inception in 2000, the company has consistently demonstrated its commitment to simplifying insurance and making it more accessible to millions of customers across the country. With a strong foundation built on trust,\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222545,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/30\/safeguard-your-vehicle-this-monsoon-essential-motor-insurance-add-ons-from-royal-sundaram-3\/","url_meta":{"origin":222631,"position":2},"title":"Safeguard Your Vehicle This Monsoon: Essential Motor Insurance Add-ons From Royal Sundaram","author":"Team Small News","date":"December 30, 2025","format":false,"excerpt":"As the monsoon season approaches, it's essential to ensure your vehicle is protected from the potential risks associated with heavy rainfall and flooding. Royal Sundaram, a leading insurance provider, offers a range of motor insurance add-ons that can provide comprehensive coverage for your vehicle. Here are some essential add-ons to\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222485,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/23\/avoid-common-monsoon-mistakes-royal-sundarams-guide-to-keeping-your-vehicle-safe-and-insured-2\/","url_meta":{"origin":222631,"position":3},"title":"Avoid Common Monsoon Mistakes: Royal Sundaram’s Guide to Keeping Your Vehicle Safe and Insured","author":"Team Small News","date":"December 23, 2025","format":false,"excerpt":"As the monsoon season sets in, driving conditions in India become increasingly unpredictable, with above-average rainfall leading to flooding, waterlogged roads, and engine trouble. According to Royal Sundaram, a leading car insurance provider, this year's southwest monsoon was 8% above the long-term average, with 35% of the country receiving excess\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222531,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/28\/mumbai-state-commission-holds-royal-sundaram-general-insurance-liable-for-wrongful-repudiation-of-claim-2\/","url_meta":{"origin":222631,"position":4},"title":"Mumbai State Commission holds Royal Sundaram General Insurance liable for wrongful repudiation of claim.","author":"Team Small News","date":"December 28, 2025","format":false,"excerpt":"The State Consumer Disputes Redressal Commission, Mumbai bench, has ruled against Royal Sundaram General Insurance Co. Ltd. for wrongfully rejecting a claim related to a vehicle. The complainant, the registered owner of a Mitsubishi Pajero Sport, had filed the claim. The vehicle was insured with Royal Sundaram under a comprehensive\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222529,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/27\/essential-motor-insurance-add-ons-from-royal-sundaram\/","url_meta":{"origin":222631,"position":5},"title":"Essential Motor Insurance Add-Ons from Royal Sundaram","author":"Team Small News","date":"December 27, 2025","format":false,"excerpt":"The monsoon season in India can be challenging for car owners, with heavy rains, flooding, and waterlogging affecting nearly every region. 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To mitigate these risks,\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/Royal-Sundaram-logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/comments?post=222631"}],"version-history":[{"count":0,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/posts\/222631\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/media\/221254"}],"wp:attachment":[{"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/media?parent=222631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/categories?post=222631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallnews.in\/insurance\/wp-json\/wp\/v2\/tags?post=222631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}