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TMI Blog2018 (9) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... for credit as it falls within the exclusion Clause of the definition of input services. Show Cause Notice was issued proposing to disallow the credit and for recovery of the same along with interest and for imposing penalty. After due process of law, the Original Authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence, this appeal. 2. On behalf of the appellant, Ld. Counsel Ms. D. Naveena, submitted that the period involved is from 2015-16. She argued that Rent-a-Cab Services were availed for the purpose of picking up and dropping the employees and these are integrally connected to the manufacturing activity of the appellant. However, that the lower authorities have wrong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person liable for paying service tax for the said taxable services and the said imported goods are his inputs or capital goods; or (ii) any service used by a provider of output service for providing an output service; or (iii) any service used by a manufacturer, whether directly or indirectly or, in or in relation to the manufacture of final products and clearance of final products upto the place of remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (C) of Rule 2 of CCR, 2004 is noticed as under: "(C) Motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of - (i) transportation of passengers; or (ii) renting of such motor vehicle; or (iv) imparting motor driving skills" 5.3 It can be seen from the definition of capital goods that when the motor vehicle which is used for transporting of the passengers or for renting of vehicles, is registered in the name of the service provider, the same would be a capital good for the service provider. Thus, if the motor vehicles are capital goods for the service provider who is providing service of Rent-a-Cab / renting of cabs, then t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle, then the said motor vehicle will fall within the definition of 'capital goods'. So if the motor vehicle is registered in the name of the service provider and used to render the services of rent-a-cab service, the said services would qualify as input services. In the present case, the department has not alleged that the motor vehicles are not registered in the name of the service provider. In fact, there is no allegation that the motor vehicle which was used for providing rent-a-cab service was not capital goods for the service provider. When the definition of input services makes an exclusion specifying the category of vehicles / service provider, which does not fall within the definition, it is incumbent upon the department to exam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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