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TMI Blog2018 (6) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider. Therefore, the rent of motor vehicle does not fall under the exclusion clause provided in the definition of input service. The demand which was confirmed by the original authority, shall stand maintained as the appellant has not challenged the demand against the original order before the Commissioner (Appeals), but legally the cenvat credit is admissible on input service viz. rent-a-cab. In this position, demanding interest and penalty will be unjustified, even though the demand attained finality - demand of interest and penalty set aside. Appeal allowed - decided in favor of appellant. - APPLICATION No. E/Misc/85518/2018 APPEAL No. E/85230/2018 - A/86281/2018 - Dated:- 3-5-2018 - Mr. Ramesh Nair, Member (Judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses which were taken on rent. The buses are capital goods for the service provider. Therefore, the rent-a-cab service is provided by way of renting of vehicle and such vehicle is capital goods for service provider. The cenvat credit in respect of such service is admissible. He placed reliance on this Tribunal s judgment in the case of CST, Pune vs. Nihilent Technologies Pvt. Ltd. 2017-TIOL-2696-CESTAT-MUM which relied upon this Tribunal s judgment in the case of Marvel Vinyls Ltd. vs. CCE, Indore 2016-TIOL-3071- CESTAT-DEL. He also placed reliance on the judgment of this Tribunal in the case of Modern Petrofils Dty Div anr. vs. CCE ST, Vadodara-II 2017-TIOL-3896- CESTAT-AHM. Even though the demand of service tax was not challenged, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y both the sides. The only issue to be decided is that whether interest and penalty is chargeable in the case of availment of cenvat credit on rent-a-cab service. The appellant has not challenged the demand before the Commissioner (Appeals), hence the demand attained finality. Shri Paranjape, learned counsel for the appellant, argued extensively on merit for waiver of penalty and interest. On going through the definition of input service and exclusion provided therein, I find that the rent-a-cab service is excluded only in a case where the motor vehicle used by the service provider is not a capital goods for them. In the present case, the vehicle is owned by the service provider who has given the vehicle on rent to the appellant. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of passengers, which is rented out, is covered under the capital goods. Therefore, in a case vehicle which is rented out as capital goods for service provider, such output service shall constitute input service for the service recipient. Therefore, the budgetary changes relied upon by the learned AR is of no help to the Revenue. Accordingly, I hold that in the facts of the case, rent-a-cab is an input service for the appellant. However, the demand which was confirmed by the original authority, shall stand maintained as the appellant has not challenged the demand against the original order before the Commissioner (Appeals), but legally the cenvat credit is admissible on input service viz. rent-a-cab. In this position, demanding interest a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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