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2018 (8) TMI 532 - CESTAT AHMEDABADCENVAT Credit - input services - construction services - rent a cab services - whether the appellant is entitled for CENVAT credit in respect of services namely, construction service, rent a cab service and conventional services? - Held that:- Though the exclusion in respect of rent a cab services was made with effect from 01.04.2011, the exclusion entry reads as (B) services provided by way of renting of a motor Vehicle, is so far as they relate to a motor vehicle which is not the capital goods. On reading of the above entry, the rent a cab service was excluded only in a case where a motor vehicle which is rented out is not a capital goods - In the present case, the passenger vehicle was taken on rent by the appellant which falls under Chapter Head 87.02 and the rent a cab service falls under clause (0) sub clause (o) of clause 105 of section 65 of the Finance Act. Accordingly, in terms of clause (B) of definition of capital goods provided under Rule 2 (a) the motor vehicle taken on rent by the appellant is a capital good. Therefore, it does not cover under the exclusion entry provided under clause 2 (e) under sub clause B of Rule 2(a) of CENVAT credit rules. Therefore, rent a cab is an admissible input service and credit is admissible - credit allowed. Conventional services - Held that:- The credit was denied only on the ground that it is an optional service for the appellant. It is not understood how the Revenue can decide which are the optional and which are the essential services of a business organization. From the fact it is clear that conventional services was availed for upgrading their overall system of maintenance of bulk handling which is related to the manufacture and removal of goods - credit allowed. As regard construction service, the finding of the Ld. Commissioner upheld as much as he has directed to the adjudicating authority for verification. Appeal disposed off.
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