The CESTAT has granted Shriram General Insurance a refund of Rs. 28.57 lakhs for KKC and SBC paid on cancelled insurance policies. This order emphasizes the eligibility for refunds in similar circumstances.
CESTAT Grants Refund on Cancelled Insurance Policies
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed Shriram General Insurance a refund amounting to Rs. 28.57 lakhs concerning Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) associated with cancelled insurance policies.
The tribunal's decision rested on the fact that since the insurance policies in question were cancelled, the cess levied was thus not applicable. Furthermore, the insurance provider's claims were substantiated under the relevant provisions concerning refunds for cess paid on services that were subsequently cancelled.
This ruling reinforces the principle that businesses under circumstances of service cancellations are entitled to seek refunds for associated taxes collected. Practitioners should consider this decision when advising clients on tax liabilities and entitlements regarding cancelled services.
Citations
- Shriram General Insurance (2026) CESTAT
