UNION OF INDIA Vs. KERALA STATE INSURANCE DEPARTMENT

JUDGEMENT

(1.) These appeals arise from the common judgment of the learned single Judge in W.P(C).Nos.15892/08 and 19981/09. Both these writ petitions were filed by the Kerala State Insurance Department and the issue raised was, whether the State Insurance Department established for providing life insurance coverage to the employees of the State Government in pursuance of Rules 22A and 22B of Part I KSR and also for providing general insurance coverage for the assets of the government/Governmental institutions was liable to pay service tax treating such insurance as taxable service as defined in the Finance Act, 1994. By the judgment under appeal, learned single Judge held that the life insurance provided pursuant to Rules 22A and 22B of Part I KSR is not exigible for service tax. It is this judgment which is under challenge before us.

(2.) We heard learned standing counsel for the appellants and the learned special Government Pleader appearing for the respondent.

(3.) The short issue raised for consideration is whether the conclusion of the learned single Judge that the life insurance provided in pursuance of Rules 22A and 22B of Part I KSR is outside the purview of service tax under the Finance Act, 1994 is legally tenable or not.