TMI Blog2019 (6) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... output service of the Appellant i.e. lending of money. Since on an identical issue between the same parties, this Tribunal has taken a view to allow the appeal - credit allowed - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 87398 of 2015 - FINAL ORDER NO. A/86548 / 2019 - Dated:- 10-6-2019 - MR. C J MATHEW, MEMBER (TECHNICAL) AND MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri Makrand Joshi, Advocate for the Appellant Shri Onil Shivdikar, Asst. Commissioner, Authorised Representative for the Respondent ORDER This Appeal has been filed by the Appellant, assailing the order dated 14/10/2015 passed by the Commissioner of Service Tax (Appeals), Pune in Order-in-Appeal No. PUN-SVTAX-000-APP-127- 15- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices of repossession of vehicles. During the period from April, 2012 to March, 2013, the Appellants had availed Cenvat credit of ₹ 25,58,840/- on such services. Accordingly, a statement of demand dated 26/08/2013 was issued to the Appellants for recovery of the aforesaid amount of ₹ 23,58,840/- alongwith interest and penalty. The said statement of demand was adjudicated vide Order-in-Original dated 28/01/2015 by which the recovery of the aforesaid amount was upheld alongwith interest and penalty. On Appeal filed by the Appellant, the learned Commissioner vide impugned order dated 14/10/2015 upheld the order passed by the lower authority. 3. We have heard learned Counsel for the Appellant and learned Authorised Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , repossession of vehicle was carried out by the recovery agent in connection with the recovery of the overdue loan amount. In our view the lending service is not limited to disbursing the loan but it includes the recovery of the said lended money which is one of the vital part of the overall activity of lending of money. Therefore the service received for taking repossession of the vehicle by recovery agent is an input service which is used for the service of lending. The definition of input service under Rule 2(1) of Cenvat Credit Rules, 2004 as under: 2(1) Input Service means any service,- (i) used by a provider of taxable service for providing an output service, or (ii) used by the manufacturer, whether directly or ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion, therefore this service is clearly covered under the definition of Security which means a thing deposit or pledged as a guarantee of the fulfilment of an undertaking or the repayment of the loan, to be forfeited in case of default . In view of this definition the service of taking repossession of the vehicle from the borrower is a part of security service which is specifically included in the definition of input service. For this reason also the service of repossession provided by the recovery agent to the appellant is an input service. Therefore the appellant is clearly entitled for the Cenvat credit on such input service. However it is observed from the submission of the Ld. Counsel that the amount of recovery charges was recove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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