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TMI Blog2018 (9) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the said services would be eligible for credit. The said fact as to whether these vehicles are capital goods for the service provider requires verification. Appeal allowed by way of remand. - Appeal No. E/40323/2018 - Final Order No. 42006/2018 - Dated:- 11-7-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) Ms. D. Naveena, Advocate for the Appellant Shri. R. Subramaniyan, AC (AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xclusion would apply only if the motor vehicles are not capital goods for the service provider. She submitted that the appellant would be able to furnish documents to establish that the motor vehicles are capital goods for the service provider who has provided the service of Rent-a-Cab to the appellant. She, therefore, requested remand of the matter. She relied upon the decision of the Tribunal in the case of M/s. Sundaram Clayton Ltd. Vs. Commissioner of Central Excise, Chennai-II vide Final Order No. 41952/2018 dt. 09.07.2018. 3. The Ld. AR, Shri. R. Subramaniyan, supported the findings in the impugned order. He submitted that the impugned services fall within the exclusion clause and, therefore, is not eligible for credit. 4. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; [but excludes]: [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of Section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, Except for the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are capital goods for the service provider. 5.4 The adjudicating authority has erred in observing that the credit is not eligible because the motor vehicles are not capital goods for the manufacturer / service recipient / appellant. The Tribunal in the case of M/s. Sundaram Clayton Ltd. vide Final Order cited supra , has discussed the issue in detail. The relevant portion is reproduced as under: 6. As per Clause (B) of the definition of input service , only when the services provided by way of renting of a motor vehicle insofar as they relate to motor vehicle, which is not capital goods for the service provider, would stand excluded. If the motor vehicle are capital goods for the service provider, then they would fall within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of credit stating that the services fall within the exclusion clause is not correct. The appellant in page 42 of the appeal paper book has produced certificate issued by the service provider namely Sri Bhagyalakshmi enterprises (Staff Bus Operators), wherein it is stated that the vehicle rented out to the appellants are capital goods in their books of accounts. Similar declarations issued by other cab operators like KP Cabs, Raagav Tourist Service etc. are also furnished by appellant. These documents would go to show that the motor vehicles are capital goods for the service provider. Then the services provided by use of such motor vehicles which are capital goods for service provider would not fall within the exclusion clause. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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