TaxTMI 
TaxTMI 
2026 (1) TMI 1348
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....ed to as CCR, 2004) amended with effect from 01.04.2012. The appellant was issued a Show Cause Notice dated 19.06.2017 for the period 01.06.2012 to 31.03.2012 which was adjudicated by Order in Original No. 07/D/GNR/NK/2018-19 dated 29.08.2018 by the Assistant Commissioner, CGST & Central Excise, Gandhinagar wherein demand of the wrongly availed Cenvat Credit amounting to Rs.24,36,666/- was confirmed. 1.1 The appellant had filed an appeal before the Commissioner (Appeals), Ahmedabad against Order in Original No. 07/D/GNR/NK/2018-19 dated 29.08.2018 by the Assistant Commissioner, CGST & Central Excise, Gandhinagar which was decided vide OIA No. AHM-EXCUS-003-APP-137-18-19 dated 17.12.2018. In the said case the Order of the adjudicating authority denying Cenvat Credit on rent-a-cab service availed by the appellant was upheld and the appeal filed by the appellant was rejected. 1.2 Subsequently, upon the department seeking the details, the appellant submitted that during the period from 01.04.2016 to 30.06.2017 they had availed Cenvat credit of Input Service i.e. Rent-a-cab service. Since the same was considered inadmissible by the department, a Show Cause Notice No. IV/16-22/Effe....
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....lace of removal.] and includes services used in relation to setting up, modernization, 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 up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal; [but excludes], - [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or] [(B) (servic....
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....cture of final product is not allowed. Goods such as furniture and stationary used in an office within the factory are goods used in the factory and are relation to the manufacturing business and hence the credit of same is allowed. • It was pleaded that from the above circular it is clear that input service listed in definition has been disallowed if the service has been availed & utilized for the primarily for personal use or consumption of employees, which is not so in our case, So the denial of cenvat credit on the basis of the above ratio was not justifiable. So it is not for the personal use just like use of cabs for other than business purpose, but it is for the employees during the business hours only. Further appellant has been engaged in the software development & call centre 24*7 service and for providing such service, the employees of the appellant have to provide pick up & drop facility and thus the appellant availed the service of rent-a-cab for their employees. • So cenvat availed by the appellant has not been for the personal use of the employee & eligible for the cenvat credit. So denial of the cenvat credit was not tenable & justifiable. ....
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....ot a capital goods,". It is clear from the exclusion clause that appellant was not eligible to avail Cenvat Credit in respect of the services provided by way of renting of a motor vehicle i.e. rent-a-cab service • The appellant have relied upon a few judgements in support of their Claim for Cenvat Credit on rent-a-cab service availed by them. It is found that the judgements cited by them pertain to the period prior to the amendment of Rule 2 (1) of the CCR, 2004 and, therefore, the same are not applicable to the present case. • Further, the decision of the Hon'ble Tribunal in the case of Bombay Dyeing and Manufacturing Ltd Vs. CCE(Appeals), Raigad reported at 2018 (363) ELT 1107 (Tri-Mumbai) is squarely applicable to the facts of the present case. In the said case the Hon'ble Tribunal had held at para 4 that "As regard the rent-a-cab service, it is observed that period involved is June, 2014 to January, 2015 w.c.f. 1-4-2011 rent-a-cab service was excluded from the definition of input service, therefore due to such exclusion the credit in respect of rent-a-cab service is not available to the appellant, In result, I hold that credit in respe....
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....A. are in relation to the rent-a-cab services which were meant for going at any other manufacturing or work related movement from the place of work. As against that there are categorical decisions about the too and fro transporation in the case of Solar Industries India Limited 2022 (60) GSTL 216 Bom. and Solar Industries India Limited 2022 (64) GSTL 257 (SC). 3. Rival submissions have been considered. It is found that the issue of the too and fro transportation of employees is covered by the case of Solar Industries India Limited reported in 2022 (64) GSTL 257 (SC) which is reproduced below: "2. Providing transportation service to the employees cannot be said to be "input service" as it has nothing to do with the manufacture of the goods. 3. In that view of the matter, it cannot be said that the High Court has committed any error in denying the Input Tax Credit and holding that such a service is excluded from the input service. 4. We are in complete agreement with the view taken by the High Court. 5. The Special Leave Petition stands dismissed. 6. Pending applications stand disposed of." 4. In view of the same, appellant has no ca....