2012 (8) TMI 602

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..... evenue authorities were of the view that such services are not eligible for benefit of cenvat credit and hence issued a show cause notice. Adjudicating authority confirmed the demands raised by holding that the services are not eligible for cenvat credit. On an appeal, the first appellate authority relying upon the Division Bench decision of the Tribunal in the case of Stanzen Toyotetsu India Pvt. Ltd. Vs. CCE Bangalore 2009 (14) STR 316 (Tri. Bang.) and various other decisions allowed the cenvat credit of the service tax paid on rent a cab services.   3. The ld. departmental representative while assailing the order submits that the first appellate authority erred in coming to such a conclusion. It is his submission that there is no n .....

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..... hat the services of rent a cab services were received by the respondent for transportation of their employees from their residence to the factory premises and back to the residence. It is also undisputed that the service provider is registered and respondent is discharging the service tax liability billed on on such services rendered. On the background of such a factual matrix, I find that the judgment of the Tribunal in the case of Stanzen Toyotetsu India (P) Ltd. (supra) and in the case of Cable Corporation of India 2008 (12) STR 598 (Tri. Mumbai) is directly on the point as to the eligibility of cenvat credit of the service tax paid in the case of rent a cab services. Division Bench of the Tribunal held that receiver of such services is .....

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..... of decision of the Sundaram Brake Linings and went on to follow the view expressed by the Stanzen Toyotetsu India (P) Ltd. It is also noted that the judgment of the Tribunal in the case of Bell Ceramics Ltd. was also taken in appeal before the Hon ble High Court of Karnataka and the Hon ble High Court of Karnataka in their judgment as reported at 2012 (25) STR 428 (Kar.) has dismissed the appeal filed by the Revenue.   10. In sum, I find that the first appellate authority was correct in following the law which has been settled down by the various judgments of the Tribunal in allowing the cenvat credit of the service tax paid on rent a cab services to the respondent herein. I find that the impugned order is correct and legal and does .....

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