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TMI Blog2019 (5) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff Act, 1985. During the course of the audit of the records of the appellant for the period from April 2016 to March 2017, the audit officer raised the objection that the appellant has taken CENVAT credit on inadmissible input services viz., (i) CENVAT Credit of Rs. 4,41,262/- availed for the period from April 2016 to March 2017 on the ineligible service of renting of motor vehicle; (ii) CENVAT Credit of Rs. 5,622/- availed for the period from April 2016 to March 2017 on the ineligible service of General Insurance service; (iii) CENVAT credit of Rs. 47,029/- availed for the period from April 2016 to March 2017 on the ineligible service on Manpower Supply for road construction. Thereafter, the appellant reversed the said cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case they are challenging the denial of CENVAT credit on Rent-a-Cab Service amounting to Rs. 4,41,262/- and with regard to other denial, the appellants are not in appeal. 4. On the other hand, the learned AR defended the impugned order and submitted that Rent-a-Cab Service has been specifically excluded from the definition of 'input service' w.e.f 1.4.2011. He further relied upon the following decisions in support of his submissions: * S.K.D. Lakshmanan Fireworks Industries vs. CCE & ST, Tiruvelveli: 2016 (42) STR 359 (Tri.-Chennai) * CST, Mumbai vs. MMS Maritime (India) Pvt. Ltd.: 2016 (41) STR 869 (Tri.-Mum.) * Wipro Ltd. vs. CCE, Bangalore-III: 2018 (363) ELT 1111 (Tri.-LB) * CC & CE, Ghaziabad vs. Rathi Steel & Power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. An Exclusion Clause B was introduced w.e.f. 01.04.2011 to the following effect: "[(b) [Services provided by way of renting of a motor vehicle], insofar as they relate to a motor vehicle which is not a capital goods;]" 4. A reading of the above Exclusion Clause show that services provided by way of renting of a motor vehicle do not stand excluded in totality. The Exclusion Clause is in respect of input services of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not capital goods. The contention of the assessee is that motor vehicle is a capital goods, as per the definition of the "capital goods‟ contained under Rule 2(a) of the Cenvat Credit Rules, 2004. The appellate authority has specifically obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are not capital goods for the service recipient cannot be appreciated inasmuch as motor vehicles are admittedly capital goods in terms of the Rule 2(A) of Cenvat Credit Rules. ST/21062/2018-SM 6 7. In view of the above analysis, I hold that the appellant would be entitled to the cenvat credit on service tax paid on the said services. Accordingly, the impugned order is set aside and appeal allowed with consequential relief to the appellant." 5.2 Further I find that this decision has been followed in various decisions cited supra. Therefore, by following the ratio of the said decision, I am of the view that the impugned order denying the CENVAT credit on 'Rent-a-Cab service' is not sustainable in law and therefore, the same is set aside by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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