ITC eligibility on motor vehicle purchased to provide Rental Services

Respected Experts,

I have purchased some motor vehicles(Car) and used it to provide renting services. Under this, I have made agreement with third party, where as per agreement, they are charged certain amount monthly and they can use it for whatever purpose they wish to.

My query is:

1. Is the Input Credit available to me on which I have purchased motor vehicle? or Is it a blocked credit under Section 17(5)?

2. Under which SAC should I report these services in Monthly returns?

As far as my understanding, Under Section 17:

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:-

2[(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on navigating such vessels; or

(D) imparting training on flying such aircraft;

As per this, input credit should be eligible. However, my friend who is in same business has informed that he has received a notice saying, it doesn't fall under the definition of further supply and ITC on cars purchased is a blocked credit.

It would be of great help, if experts and seniors can shed light on this with relevant court judgements or any.