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2018 (7) TMI 688 - AT - Central ExciseCENVAT Credit - input services - rent-a-cab service - the ground on which the credit has been disallowed is that the said services are primarily used for personal use or consumption of the employees - Held that:- If the motor vehicle is designed to carry passengers and is registered in the name of the service provider, for being used for providing output service of transportation of passengers or for renting of vehicle, then the said motor vehicle will fall within the definition of ‘capital goods’. So if the motor vehicle is registered in the name of the service provider and used to render the services of rent-a-cab service, the said services would qualify as input services. In the present case, the department has not alleged that the motor vehicles are not registered in the name of the service provider. In fact, there is no allegation that the motor vehicle which was used for providing rent-a-cab service was not capital goods for the service provider. When the definition of input services makes an exclusion specifying the category of vehicles / service provider, which does not fall within the definition, it is incumbent upon the department to examine whether the impugned services fall within such exclusion or not before disallowing the credit - As the show cause notice does not raise any allegation with regard to the category of motor vehicle / service provider, which is excluded as per clause (B), the disallowance of credit stating that the services fall within the exclusion clause is not correct. Credit allowed - appeal allowed - decided in favor of appellant.
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