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2018 (6) TMI 180 - AT - Central ExciseDemand of Interest and Penalty - availment of cenvat credit on the input service viz. rent-a-cab service - reversal of irregularly availed CENVAT credit - input services - rent-a-cab services - Held that:- On going through the definition of input service and exclusion provided therein, it is found that the rent-a-cab service is excluded only in a case where the motor vehicle used by the service provider is not a capital goods for them - In the present case, the vehicle is owned by the service provider who has given the vehicle on rent to the appellant. Therefore, the motor vehicle which is given on rent is a capital goods for the service provider. Therefore, the rent of motor vehicle does not fall under the exclusion clause provided in the definition of input service. The demand which was confirmed by the original authority, shall stand maintained as the appellant has not challenged the demand against the original order before the Commissioner (Appeals), but legally the cenvat credit is admissible on input service viz. rent-a-cab. In this position, demanding interest and penalty will be unjustified, even though the demand attained finality - demand of interest and penalty set aside. Appeal allowed - decided in favor of appellant.
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