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TMI Blog2016 (11) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... never be a capital good to the recipient of the said services. The motor vehicle will always be a capital good or otherwise for the person who is providing the services. For service provider falling under the category of renting of motor vehicle the motor vehicle would always be a capital good. As such the expression- “which is not a capital good appearing in the said exclusion clause would requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipping and was availing Cenvat Credit facilities under Cenvat Credit Rules 2004. During the period from August 2013-February 2014 they availed the Cenvat Credit on service tax of ₹ 2,21,248/- paid on input services received by them by way of renting of motor vehicle for transport of its employees from Gwalior to their factory and for their return journey. 2. Revenue by entertaining a vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir final product and includes many services specified therein but excludes some of the services specified. An Exclusion Clause B was introduced w.e.f. 01.04.2011 to the following effect: [(b) [Services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods;] 4. A reading of the above Exclusion Clause show that services prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input services of renting of motor vehicle would not be admissible. 6. However, I find flaw in the above interpretation of appellate authority. He has for the appellant. A person who is receiving the input services of renting of immovable property, can never avail cenvat credit of duty paid on the motor vehicles and as such motor vehicle can never be a capital good to the recipient of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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