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TMI Blog2018 (5) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant. - E/20259/2018-SM - Final Order No. 20569 / 2018 - Dated:- 12-4-2018 - S. S. Garg, Judicial Member Mr. Syed Peeran, Advocate For the Appellant Mr. Parasivamurthy, AR For the Respondent ORDER Per : S. S. Garg The present appeal is directed against the impugned order dated 14.11.2017 passed by the Commissioner (A), whereby the Commissioner (A) has allowed the appeal of the Department. 2. Briefly the facts of the present case are that the appellants are engaged in the manufacture of goods falling under Chapter 85 of CETA, 1985. During the course of verification of their records by the Departmental Officers of Audit Wing, it was noticed that the appellant during the period from December 2012 to October 2014 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Rules, 2004 excluded services provided by way of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not a capital goods from the definition of input service. He further submitted that Rule 2(l)(B) of CENVAT Credit Rules, 2004 does not exclude services provided by hiring of all motor vehicles . The exclusion clause is in respect of input services of renting of motor vehicle, insofar they relate to a motor vehicle which is not a capital goods. Therefore, the exclusion is conditional in nature and the exclusion will only operate subject to the condition being fulfilled. He further submitted that renting of motor vehicle which is a capital goods in the hands of service provider will not be covered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein but excludes some of the services specified. An Exclusion Clause B was introduced w.e.f. 1-4-2011 to the following effect : [(b) [Services provided by way of renting of a motor vehicle], insofar as they relate to a motor vehicle which is not a capital goods;] 4. A reading of the above Exclusion Clause show that services provided by way of renting of a motor vehicle do not stand excluded in totality. The Exclusion Clause is in respect of input services of renting of a motor vehicle, insofar as they relate to a motor vehicle which is not capital goods. The contention of the assessee is that motor vehicle is a capital goods, as per the definition of the capital goods contained under Rule 2(a) of the Cenvat Credit Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities that motor vehicle are not capital goods for the services recipient cannot be appreciated inasmuch as motor vehicles are admittedly capital goods in terms of the Rule 2(A) of Cenvat Credit Rules. 7. In view of the above analysis, I hold that the appellant would be entitled to the Cenvat credit on service tax paid on the said services. Accordingly, the impugned order is set aside and appeal allowed with consequential relief to the appellant. The said decision has also been followed by the Tribunal in the case of M/s. Godawari Power and Ispat Ltd. cited supra. 7. Following the ratio of the said decision, I am of the view that the impugned order is not sustainable in law and therefore, the same is set aside by allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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