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2013 (10) TMI 386 - AT - Service TaxAdmissibility of CENVAT Credit on Rent-a-Cab Services Waiver of Pre-deposit - Held that - Stanzen Tototetsu India Pvt. Limited 2008 (12) TMI 118 - CESTAT BANGLORE and CCE vs. Cable Corporation of India Limited 2008 (6) TMI 4 - CESTAT MUMBAI - the input services besides being used in or in relation to the manufacture of final products and clearances of final products from the place of removal includes a plethora of other services which are eligible as Input Services - The scope of definition is wide enough and credit allowed - as a result of amendment in the definition of input services with effect from 01.4.2011 service tax credit admissibility has been made very clear - However as per clarification issued by CBEC cenvat credit of Rent-a-Cab services before 01.04.2011 cannot be denied - the appellant has made out a prima facie case for complete waiver Stay granted.
Issues:
Admissibility of cenvat credit on Rent-a-Cab services for the period from Jan 2007 to Jan 2011. Analysis: The appellant filed an appeal against Order-in-Appeal No. PJ/20/VDR-I/2013-14 dated 10.4.2013, raising the issue of admissibility of cenvat credit on Rent-a-Cab services availed between Jan 2007 and Jan 2011. The appellant's representative cited relevant case laws and a CBEC Circular dated 29.04.2011 to support their argument. The Revenue's representative reiterated the stand taken by the adjudicating authority and the first appellate authority. Upon hearing both sides and examining the case records, it was noted that judgments in favor of the assessee and the CBEC Circular clarified the admissibility of service tax on Rent-a-Cab services. The Circular specifically addressed the availability of credit on services received before 01.4.2011, such as Rent-a-Cab services, stating that credit would be available if the service provision was completed before the mentioned date. The clarification highlighted the impact of the amendment in the definition of input services effective from 01.4.2011, making the admissibility of service tax credit clearer. The CBEC's clarification emphasized that cenvat credit for Rent-a-Cab services before 01.04.2011 cannot be denied. Consequently, the appellant established a prima facie case for complete waiver. Therefore, it was ordered that there would be a stay on the recoveries of confirmed dues and penalties until the appeal's disposal. The decision was dictated and pronounced in the Court.
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