2015 (12) TMI 1102

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....ated service (repair, reconditioning or restoration of motor vehicles, in any manner)(Section 65(105)(zo) and Supply of Tangible goods (Section 65(105)(zzzzj) in terms of Rule 2(1) (B) of Cenvat Credit Rules, 2004, these credits can be taken only if the services are used for providing taxable services for which credit on motor vehicle is available as capital goods. The period involved is April, 2011 to February, 2012. The appellant assessees have taken service tax credit and utilised the same for payment on clearance of their final products. The lower appellate authority has in his findings held that the appellants have wrongly taken cenvat credit of service tax paid in contravention of the provisions of Rule 2(1)(B). Similarly under Rule 2....

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.... appeal filed by the appellants. 5. After hearing the Ld. AR and on perusal of the records, I find that the insurance service has been defined under Rule 2(1) of Cenvat Credit Rules,2004 as follows:-  [(l) "input service" means any service, - (i) used by a provider of [output service] for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage....

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....y, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;] 6. From the above, it appears that in terms of Rule 2(1) (B) of the Cenvat Credit Rules, 2004, credit of service tax paid on General Insurance Services (Section 65(105) (d), renting of a cab (Section 65(105) (o), motor vehicle related service (repair, reconditioning or restoration of motor vehicles, in any manner)(Section 65(105)(zo) and supply of tangible goods (Section 65(105)(zzzzj), if these services relate to motor vehicles, is not allowed. Further, in terms of Rule 2(1)....