TMI Blog2020 (2) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... period 2011-12 also - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 88499 of 2018 - A/85033/2020 - Dated:- 8-1-2020 - HON BLE MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri Sachin Chitnis, Advocate for the Appellant Shri S.K. Hatangadi, Assistant Commissioner, Authorised Representative for the Respondent ORDER PER: AJAY SHARMA The instant Appeal has been filed against the impugned order dated 17.05.2018 passed by the Principal Additional Director General DGPM, WRU, Mumbai in Order-in-Appeal No. MUM-DGPM-WRU/APP- 172/17-18. 2. The issue involved in the matter is whether the Cenvat credit of service tax paid on Tour Operator Service used for pick-up and drop of employees of the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 18/05/2018. 4. I have heard Learned Counsel for the Appellant and Learned Authorised Representative for the Revenue and perused the records of the case. Learned Counsel submitted that the Tour Operator Service is an input service used for transportation of employees in relation to business of providing the output service and credit of service tax paid thereon is admissible and not only availment of credit but also utilisation thereof for payment of service tax of output service is in accordance with law. He further submitted that the credit on service tax paid on Tour Operator is admissible as the services used is an input service not only for the period prior to 01/04/2011 but also after 01/04/2011, since the exclusion from defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to 1-4-2011. The definition of input services during the relevant period had a wide ambit as it included the words activities relating to business . In various decisions, the Tribunal as well as the Courts have held that the Tour operator services/Rent-a-cab services are eligible for credit if it is established from records that the assessee i.e. the Appellant herein has used the said service for providing the output services. Rule 2(l) of the Cenvat Credit Rules, 2004 defines input service. The definition of input service is very wide and it also includes various services used in relation to the business. The only condition precedent is that it should be the activity relating to business. So far as Rent-a-Cab/Tour Operator service is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Revenue that input services do not have direct nexus to the business activity of the Appellant is not sustainable. Now I take up the issue of limitation for the period prior upto March, 2011. The Appellant, from time to time, submitted its Cenvat Account to the department for the aforesaid period wherein Cenvat Credit taken and availed of, is reflected. They have also filed their ST-3 Returns regularly alongwith Cenvat Credit details and invoices for the relevant period which reflected details of Cenvat Credit taken utilized and the details of payment in cash or by utilization of Cenvat Credit is also mentioned therein. Not only that, the records of the Appellants were being audited by the Audit Parties from time to time but n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de for specific exclusion in respect of rent-a-cab service from the definition of input service. The exclusion clause has got three limbs categorized as (A), (B) and (C). In the present case the services sought to be denied by the department on the ground that it is part of limb (B). 6. In terms of Rule 2(l)(B) of Cenvat Credit Rules, 2004, these credits can be taken only if these services are used for providing taxable services for which credit on motor vehicle is available as capital goods. In other words the Revenue sought to deny the credit to the Appellants on the ground that these credits would have available to the Appellants only if they are a service provider providing Tour operator service or rent-a-cab operator service and si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a motor vehicle, in so far 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 service i.e. renting of motor vehicles have been specifically included except in case where motor vehicle is eligible for Cenvat Credit as capital goods. 5. He has however denied the benefit to the assessee on the ground that such motor vehicle are not capital goods for the appellant, Cenvat Credit availed on the input services of renting of motor vehicle would not be admissible. 6. However, I fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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