TMI Blog2014 (1) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the tax on GTA service was remitted for the transport of two wheelers and spares from the manufacturer to the appellant's show room - there is a sufficient and a proximate nexus for availment of cenvat credit earned on remittances of tax on GTA services, for utilization in its output service as authorized service station and provider of BAS - Following decision of Sri Venkanna Motors Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.3,31,250/- under Section 78 of the Act. The disallowance of cenvat credit as specified was pursuant to two show cause notices 22.1.2010 and 18.10.2010. The period in issue is 2006-07 to August, 2009. The appellant is a dealer which entered into a dealership agreement with Hero Honda Motors Limited for marketing and distribution; sales; service and vending spare parts of two wheelers manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atters products. The adjudicating authority disallowed the cenvat credit availed on the ground that the taxable "Authorised Service Station" and "Business Auxiliary Service" provided by the appellant have no nexus with the remittances made for the goods transport agency service provided to the appellant for transport of new two wheelers from Hero Honda Motors Limited factory to the show room; that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c that no precise or mathematical correlation is required between the input and output services. It cannot be disputed that the appellant does service two wheelers manufactured by the Company and that the tax on GTA service was remitted for the transport of two wheelers and spares from the manufacturer to the appellant's show room. 4. In my considered view this is a sufficient and a proximate ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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