Service tax credit on car repairing against excise duty

[HARDIK JANI]

Dear Sir,

It can be possible to take Cenvat credit, of Service tax paid for director's car repairing & insurance , against payment of excise duty? If possible then under which provision ?

AI Summary

Can Cenvat Credit Apply to Director's Car Repairs? Rules 2004 Exclude Motor Vehicles, Creating Legal Uncertainty. A query was raised about the eligibility of claiming Cenvat credit for service tax paid on a director's car repairs and insurance against excise duty. Responses highlighted that under the Cenvat Credit Rules, 2004, motor vehicles are generally excluded from the definition of inputs, thus disallowing such credits. However, one opinion suggested that if the car is essential for business operations and registered in the company's name, credit might be justifiable, though litigation risks exist. Another response noted that services related to motor vehicles are not considered 'input services' unless the vehicle is classified as 'capital goods' for certain output services.