2014 (3) TMI 987 - AT - Service Tax

Denial of CENVAT Credit - Rent a cab service - Held that - As the period involved in this appeal is before 1-4-2011 and the lower authorities are bound by the circular issued by C.B.E. & C. accordingly the appellant has correctly availed the Cenvat credit with respect to rent-a-cab services. - appeal filed by the appellant is allowed with consequential relief if any - Decided in favour of assessee.

Summary

Issues Involved: Admissibility of Cenvat credit on rent-a-cab services before and after the amendment of the definition of "input services" under the Cenvat Credit Rules, 2004.

Analysis:

1. Issue of Admissibility of Cenvat Credit on Rent-a-Cab Services:
The appellant filed a stay petition and appeal against Order-in-Appeal No. VDR-EXCUS-001-APP-318/2013-14, dated 22-8-2013, regarding the admissibility of Cenvat credit on rent-a-cab services. The appellant argued that as per Circular No. 943/4/2011-CX., dated 29-4-2011, issued by C.B.E. & C., Cenvat credit on rent-a-cab services is admissible. The appellant contended that the Cenvat credit on rent-a-cab service is admissible to them before the definition of "input services" was amended under the Cenvat Credit Rules, 2004. The appellant relied on the circular which clarified that the credit on services received before 1-4-2011, on which credit is not allowed now, shall be available if the provision had been completed before 1-4-2011. The appellant successfully argued that since the period involved in this appeal is before 1-4-2011, and the lower authorities are bound by the circular issued by C.B.E. & C., they have correctly availed the Cenvat credit with respect to rent-a-cab services.

2. Decision and Conclusion:
After hearing both sides and examining the case records, the appeal filed by the appellant was allowed with consequential relief, if any. The stay application was disposed of. The Tribunal upheld the admissibility of Cenvat credit on rent-a-cab services for the period before the amendment of the definition of "input services" under the Cenvat Credit Rules, 2004, based on the circular issued by C.B.E. & C. The judgment was pronounced on 28-3-2014, and the appellant's arguments were found to be valid and in compliance with the relevant circular and legal provisions.

This analysis highlights the key arguments presented by the appellant regarding the admissibility of Cenvat credit on rent-a-cab services and the Tribunal's decision in favor of the appellant based on the interpretation of the circular and relevant legal provisions.