TMI Blog2015 (6) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... to be sold from the show room, which was not a taxable service - nexus between input services and output service - Held that:- in view of the judgment of Hon'ble Andhra Pradesh High Court in the case of Commissione Vs. Shariff Motors [2013 (12) TMI 1476 - ANDHRA PRADESH HIGH COURT], the impugned order is set aside. - Decided in favour of appellant - E/51070/2014 EX. [SM] - Final Order No. 54107/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attributable to the output service. Taking and utilization of such credit was objected to by the Department on the ground that the appellant was availing credit of service tax paid on freight incurred for inward transportation of vehicles to be sold from the show room, which was not a taxable service. In other words, according to the Department, since there is no nexus between the input services a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity with the statutory provisions and the utilization of the said credit cannot be denied. 3. Per-contra, the Id. DR, Shri Devender Singh appearing for the respondent submits that since there is no nexus between the input and the output service provided by the appellant, cenvat credit is not admissible, in view of the definition of input service contained in Rule 2(l) of the Cenvat Credit Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en input service and output services. It has further been held that this is sufficient and proximate nexus for availing cenvat credit on GTA service for utilizing in output service. Further, the reason assigned for disallowance of cenvat credit in the impugned order is that sale of motor vehicle is not a taxable service, and thus, taking of cenvat credit on the freight amount incurred for inward t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Id. DR are not necessary for any further discussion. 7. In view of the judgment of the Hon'ble Andhra Pradesh High Court in the case of Shariff Motors (supra), we do not find any merits in the impugned order. Accordingly, the same is set aside and the appeal is allowed in favour of the appellant. (Dictated and pronounced in the open Court) - - TaxTMI - TMITax - Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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