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TMI Blog2017 (4) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... availed by appellant is eligible for credit. Hiring of tractors - Held that: - Since tractors are also motor vehicles and the services relating to motor vehicles having been expressly excluded, the credit of service tax paid on hiring of motor vehicles/tractors is not eligible to the appellant. The Commissioner (Appeals) has rightly disallowed the credit - credit denied. Appeal allowed - decided partly in favor of appellant. - Appeal No. E/30214/2016 - Final Order No. A/30453/2017 - Dated:- 8-3-2017 - Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. V.J. Sankaram, Advocate for the Appellant Sh. P.S. Reddy, Assistant Commissioner (AR) for the Respondent ORDER [ Order Per Sulekha Beevi, C. S. ] 1. The above appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence this appeal. 3. On behalf of the appellant, the Ld. Counsel Sh. V.J. Sankaram submitted that the appellant is aggrieved by the disallowance of credit of service tax paid on Gardening and Hiring of tractor for watering the gardens. The Ld. Counsel submitted that the appellant has utilized the services for maintenance of green belt in the factory. According to the Clearance Certificate given by the Ministry of Environment and Forests, for the project of setting up the cement factory, the appellant has under taken to comply with conditions mentioned in F. No. J-11011/1014/2007-IA II (I) issued by Government of India, Ministry of Environment and Forests (I.A.D dated 11.06.2008). The condition No. 14 in the said clearance letter stipul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below have rightly denied the credit availed on gardening services. The appellant has also availed credit on services tax paid for hiring tractors. Tractors are motor vehicles. Sub clause (B) of the definition of input service expressly excludes the services provided by way of renting of motor vehicle. The tractors being motor vehicles, the credit has been rightly disallowed. 5. I have heard the submissions made before me. The dispute is with regard to denial of credit on two services (i) gardening services (ii) hiring of tractors. The clearance letter enunciated above issued by the Ministry of Environment Forests stipulates the condition that appellant has to maintain a green belt. The said condition is reproduced as under: xiv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposing penalty on the appellant, is set aside. The appeal is allowed. In view thereof, I hold that the gardening services availed by appellant is eligible for credit. 7. The appellant has availed credit on service tax paid for hiring tractors. The appellant contends that since the tractors are used for watering the garden intended to maintain green belt, credit ought to be allowed. The definition of input service w.e.f. 01.04.2011 expressly excludes services provided by way of renting of motor vehicle when such motor vehicle is not a capital good for assessee. The relevant part of definition is reproduced as under: Clause (B) of definition of input services: Services provided by way of renting of a motor vehicle, in so far a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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