TaxTMI 
TaxTMI 
2019 (12) TMI 555
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....rused the appeal papers and other records of the case. The appellant is a service provider registered for providing clearing and forwarding agent services under Section 65(105)(j) of the Finance Act 1994 and has been paying service tax under this head. From the records, it appears that the appellant has not rendered the services or paid service tax under any other head. They also availed CENVAT credit under CENVAT Credit Rules 2004. The dispute is regarding availment of CENVAT Credit on "motor vehicles" as capital goods by the appellant. The term capital goods has been defined in Rule 2(a) of CENVAT Credit Rules 2004. Which excludes motor vehicles except when they are used for rendering services of courier agencies, tour operator services, ....
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....tion to a pandal or shamiana in any manner and also includes the services, if any, (provided or to be provided) as a caterer; The appellant had not rendered any of these services and had rendered only service of clearing and forwarding agent. 2. Therefore a show-cause notice was issued on 12.10.2015 seeking to deny the CENVAT Credit availed by them on motor vehicles and recover the same under Rule 14 of CENVAT Credit Rules 2004 read with proviso to Section 73(1) of Finance Act 1994. It was also proposed to recover CENVAT Credit availed on maintenance and repair of the aforesaid vehicles under Rule 14 of CENVAT Credit rules 2004 read with proviso to Section 73(1) of the Finance Act 1994. Further, it was proposed to charge interest unde....
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....Rule 2(a)(B) of CENVAT Credit Rules 2004 did not permit CENVAT credit used for cargo handling, transportation etc. but specifically for rendering some services classifiable under some sub-clauses of Section 65(105). The appellant's argument is that since their clearing and forwarding activity also involves cargo handling they should be entitled to this CENVAT Credit. This issue must be examined in the light of Section 66F of the Finance Act 1994 which reads as follows: "66F. Principles of interpretation of specified descriptions of services or bundled services (1) Unless otherwise specified, reference to a service (herein referred to as "main service") shall not include reference to a service which is used for providing ma....
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...., the expression "bundled service" means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services.]" From the above it is evident that services which are rendered often involve more than one type of activities. In such cases, the service should be classified as that service which gives its essential character. There is no provision in this Section or under any other provision to classify the same service under more than one head for different purposes such as one head for paying service tax and another to claim CENVAT credit. Undisputedly the appellant has only rendered clearing and forwarding services which does not enti....