TMI Blog2019 (6) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal allowed - decided in favor of appellant. - ST/20058, 20134/2019-SM - Final Order No. 20464-20465/2019 - Dated:- 11-6-2019 - MR. S.S GARG, JUDICIAL MEMBER Mr. A. Mony, CA For the Appellant Mr. Madhup Sharan, AR For the Respondent ORDER Per: S.S GARG These two appeals have been filed by the appellant against the impugned order dated 3.10.2018 and 11.12.2018 passed by the Commissioner (A) whereby the Commissioner (A) has rejected both the appeals of the appellant. 2. Since the issue involved in both the appeals is identical, therefore, both the appeals are being disposed of by this common order. The details of bot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciating the definition of input service as provided in Rule 2(l) of CENVAT Credit Rules, 2004 and without considering the binding judicial precedent. He further submitted that the appellants are service providers of Telecommunication Service and has hired the service of vehicles which were used by BSNL employees for the purpose of maintaining BSNL telephone exchanges, BTS and other Telecommunication services, etc., operational at various locations in their Telecom Circles. He further submitted that these services are essential and have connection to the provision of their output service. He further submitted that the exclusion clause of the input service under Rule 2(l) is not applicable in the present case. He also submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 observed that the said input ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the services recipient cannot be appreciated inasmuch as motor vehicles are admittedly capital goods in terms of the Rule 2(A) of Cenvat Credit Rules. 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. The said decision has also been followed by the Tribunal in the cases of M/s. Godawari Power and Ispat Ltd. (supra) and M/s. Macurex Sensors Pvt. Ltd. vs. CCT vide Final Order No.20569/2018 has allowed the CENVAT credit. 7. Following the ratio of the said decisions, I am of the view that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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