2019 (1) TMI 1246

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.... the facts of the present case are that the appellant is registered under Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act and registered under service tax for mandap keeper, renting of immovable property, management, maintenance or repair, selling of space for advertisement, sponsorship, rent a cab operator and works contract services. On verification of the records of the appellant, the Department entertained the view that the appellant has availed and utilized ineligible cenvat credit in respect of rent-a-cab service received by them. Thereafter a show-cause notice dated 12.08.2015 was issued to the appellant proposing to demand an amount of Rs. 1,76,086/- (Rupees One Lakh Seventy Six Thousand and Eighty S....

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....ut service on rent-a-cab service can be availed by the appellant. He also submitted that the perusal of the exclusion part of the definition of 'input service' under Rule 2(l) of Cenvat Credit Rules, 2004 shows that service of renting of motor vehicle is not allowed as an 'input service' only when the motor vehicle used for rent a cab service is not capital goods. He also submitted that the said service is eligible input service if the motor vehicles rented out are capital goods of the service provider. 4. On the other hand the learned AR defended the impugned order. 5. After considering the submissions of both the parties and perusal of the material on record, I find that the Tribunal in the case of Marvel Vinyls Ltd. Vs. CCE, Indore - 2....

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.... the benefit to the assessee on the ground that such motor vehicle are not capital goods for the appellant, cenvat credit availed on the input services of renting of motor vehicle would not be admissible. 6. However, I find flaw in the above interpretation of appellate authority. He has rightly observed that the exclusion is only in respect of that motor vehicle which is not a capital goods. However, he has not extended the benefit to the assessee by observing that the same is not a capital goods for the appellant. A person who is receiving the input services of renting of immovable property, can never avail cenvat credit of duty paid on the motor vehicles and as such motor vehicle can never be a capital goods to the recipient of the said....