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TMI Blog2018 (8) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case, the passenger vehicle was taken on rent by the appellant which falls under Chapter Head 87.02 and the rent a cab service falls under clause (0) sub clause (o) of clause 105 of section 65 of the Finance Act. Accordingly, in terms of clause (B) of definition of capital goods provided under Rule 2 (a) the motor vehicle taken on rent by the appellant is a capital good. Therefore, it does not cover under the exclusion entry provided under clause 2 (e) under sub clause B of Rule 2(a) of CENVAT credit rules. Therefore, rent a cab is an admissible input service and credit is admissible - credit allowed. Conventional services - Held that:- The credit was denied only on the ground that it is an optional service for the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that the construction service is not for a new construction whereas it is in respect of maintenance and repair of the existing plant and machinery. The repair and maintenance service is not excluded from the definition of input services. As regard the rent a cab services, he submits that rent a cab service per se was not excluded whereas it is excluded only when the motor vehicle which was rent out by the services provider is not a capital goods whereas in the present case, the motor vehicle is provided under the definition of capital goods. Therefore, rent a cab service is admissible for CENVAT. As regards, the convention services, he submits that the services was availed for organising a workshop on maintenance of bulk handling syste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )- 4. - India Cements Ltd. Vs. CCE, Guntur- 2016 (45) STR 557 (Tri-Hyd) 4. I have carefully considered the submission made by both the sides and perused the records. The limited issue is to be decided is whether the appellant is entitled for CENVAT credit in respect of services namely, construction service, rent a cab service and conventional services. As regards the conventional service, the Ld. Commissioner (Appeals) has remanded the matter to the adjudicating authority for verification whether it is a construction and the actual use of services. Therefore, I do not incline to interfere in the finding given by the Ld. Commissioner on construction services. 5. As regard the services of rent a cab, though the exclusion in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admissible input service and credit is admissible. As regard conventional services, the credit was denied only on the ground that it is an optional service for the appellant. I do not understand how the Revenue can decide which are the optional and which are the essential services of a business organization. From the fact it is clear that conventional services was availed for upgrading their overall system of maintenance of bulk handling which is related to the manufacture and removal of goods. Therefore, in my considerate view, the credit is admissible. As per my above discussion, the demand in respect of conventional service and rent a cab service is set aside. As regard construction service, I uphold the finding of the Ld. Commissioner s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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