2019 (6) TMI 70

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....mittedly was hired by the Appellant to provide car service to their guests. 2. The facts of the case in brief are as under:- 2.1 The Appellant is a three star hotel and in order to provide car service to their guests, they used to hire the same. The service provider used to charge the appellant for the same alongwith the service tax and the Appellant in turn charge the amount from the guests alongwith service tax. During the course of audit for the period 2011-12 to 2014-15, it appeared that the appellants had taken Cenvat credit on input services namely Rs. 2,17,693/- towards Rent-a-cab Service and Rs. 21,069/- in respect of Professional charges viz. Expenses incurred towards Employee's State Insurance, Employee's Provident Fund etc., ....

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.... and learned Authorised Representative for the Revenue and perused the record. Learned counsel for the Appellant submitted that from the definition of capital goods, it is clear that motor vehicle used for renting is a capital goods in terms of Rule 2(a)(C)(ii) of CCR, 2004 and what is excluded under clause (B) of Rule 2(l) of CCR, 2004 is a motor vehicle which is not a capital goods. According to him the motor vehicle hired by the Appellant being a capital goods vis a vis the service provider, is not excluded from the definition of input service under Rule 2(l)(B) of CCR, 2004 and therefore input service credit in respect of the same cannot be denied to the Appellant. According to him, the Appellant received the input service for rendering....

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....hether directly or indirectly, in or in relation to manufacture of their final product and includes many services specified therein but excludes some of the services specified. An Exclusion Clause B was introduced w.e.f. 1-4-2011 to the following effect : "[(b) [Services provided by way of renting of a motor vehicle], insofar as they relate to a motor vehicle which is not a capital goods;]" 4. A reading of the above Exclusion Clause show that services provided by way of renting of a motor vehicle do not stand excluded in totality. The Exclusion Clause is in respect of input services of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not capital goods. The contention of the assessee is that motor vehic....