TaxTMI 
TaxTMI 
2018 (7) TMI 688
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....b service for the period from October 2014 to September 2015. The department was of the view that the said credit is ineligible for which show cause notice dated 2.11.2015 was issued proposing to disallow the credit and for recovery of the same to the tune of Rs. 3,95,915/- along with interest and for imposing penalties. After due process of law, the original authority disallowed the credit, confirmed the demand along with interest and imposed penalty. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. consultant Shri G. Viswanathan appeared and argued the matter. He referred to the show cause notice as well as the orders passed by the authorities below and submitted that the ground o....
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....thorities have denied the credit stating that it is for personal consumption of employees. 3. The ld. AR Shri B. Balamurugan supported the findings in the impugned order. He submitted that as per the definition of input services with effect from 1.4.2011, the service provided by way of renting of motor vehicle is excluded from the definition of input services and therefore the authorities below have rightly disallowed the credit. 4. Heard both sides. 5. On perusal of the impugned order as well as the show cause notice and the adjudication order, it is seen that the ground on which the credit has been disallowed is that the said services are primarily used for personal use or consumption of the employees. It is also vaguely stated t....
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....roducts 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 upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; [but excludes], - [(A) service portion in the execution of a works contra....
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....ion of 'capital goods'. So if the motor vehicle is registered in the name of the service provider and used to render the services of rent-a-cab service, the said services would qualify as input services. In the present case, the department has not alleged that the motor vehicles are not registered in the name of the service provider. In fact, there is no allegation that the motor vehicle which was used for providing rent-a-cab service was not capital goods for the service provider. When the definition of input services makes an exclusion specifying the category of vehicles / service provider, which does not fall within the definition, it is incumbent upon the department to examine whether the impugned services fall within such exclusion or ....