Cenvat credit on rent-a-cab employee transport denied where input service conditions and exclusion clause were not satisfied.

Cenvat credit on Rent-a-Cab Service used for employee transport is not admissible where the service does not satisfy the statutory conditions for input service credit under the Cenvat Credit Rules, 2004. Entitlement depends on whether the relevant vehicles or service arrangement qualify within the defined scope of capital goods or input service, and the exclusion clause in the definition controls availability of credit. Mere use of the service for employee pick-up and drop does not, by itself, establish eligibility when the rule-based requirements are not met. The disallowance of credit was upheld.

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Issues: Whether Cenvat credit on Rent-a-Cab Service used for employee transport is admissible.

Analysis: The entitlement to credit depended on whether the vehicles used for transportation satisfied the definition of capital goods for the service provider and whether the service fell within the scope of input service under the Cenvat Credit Rules, 2004. The exclusion clause in the definition controlled the availability of credit, and the use of the service for employee pick-up and drop did not by itself establish admissibility where the statutory conditions were not met.

Conclusion: Cenvat credit on Rent-a-Cab Service was not admissible and the disallowance was upheld.

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