2021 (6) TMI 791

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....Auditor General, Raipur, it was noticed that the appellant have availed cenvat credit of Rs. 8,96,050/- on various services during the period April, 2012 to March, 2016, by treating them as input service. It appeared to Revenue that services in question like Association Membership fees, constructions services, rent-a-cab services, general insurance services of vehicles, repair services, catering services, civil work, etc. are not input service. It further appeared that the appellant have suppressed availment of such credit from the Department in order to avail wrong credit. Accordingly, show cause notice dated 11.01.2016 was issued proposing to recover cenvat credit amounting to Rs. 8,96,050/- along with interest and further penalty was pro....

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....r and maintenance of motor vehicles is excluded from the scope of Rule 2(l) of CCR. The expression used in Rule 2 (l) "in relation to" in the inclusive portion of the "input service" so as to cover all services used in the business of manufacturing of final product. Admittedly, the credit in question with respect to input service has been used indirectly for the activity of the manufacturing by the manufacturer. Motor vehicles are required for both transportation of men and materials for the purpose of running and maintaining the manufacturing activities. Rule 2 (l) includes both the input services whether used directly or indirectly in or in relation to the manufacture of final dutiable products. It is also urged that the vehicles in quest....

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....ir and maintenance of the motor vehicles/car is covered by the definition of input service. Further, motor vehicles in question are covered by the definition of capital goods under Rule 2 (a)(c) of CCR 2004. It is an admitted fact that the appellant is paying central excise duty on its final product. It is further urged that the service of insurance of motor vehicles relating to the period 6th Jan., 2013 to 23.08.2014 was received prior to insertion of clause 3 (A) by Notification No.28/2012-CE (NT) dated 20.06.2012. It is further urged that the cenvat credit has been disallowed only on erroneous observation that the motor vehicle is not a capital goods, which is incorrect in view of the definition of motor vehicles, being capital goods. ....