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TMI Blog2023 (1) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... for the services recipient cannot be appreciated in as much as motor vehicles are admittedly capital goods in terms of the Rule 2 (A) of Cenvat Credit Rules. Reliance also placed in the case of GUALA CLOSURES (INDIA) PVT. LTD. VERSUS C.C.E., AHMEDABAD-II [ 2018 (10) TMI 1411 - CESTAT AHMEDABAD] where it was held that The services of Rent a cab and Hotel Accommodation are services are used for overall business activities of the appellant. The only business carried out by the appellant is manufacturing of excisable goods and sale thereof. Therefore, these services are actually related to the manufacturing activities of the appellant. Thus, it can be seen that since the Motor Vehicle was held to be a capital goods, the eligibility of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. Kalpesh P Shah, learned Superintendent (Authorized Representative) appearing on behalf of the revenue reiterates the finding of the impugned order. 4. I have carefully considered the submission made by both the sides and perused the records. I find that the limited issue involved is whether the appellant is eligible for Cenvat credit in respect of Rent-a-Cab service. Both the lower authorities have denied the Cenvat credit on the ground that the said service is excluded for allowing the Cenvat credit as per exclusion Clause given in Rule 2(l) of Cenvat credit Rules, 2004. Ongoing through the said exclusion Clause, I find that the exclusion is provided in respect of those Rent-a-Cab service where the vehicle taken on rent is not a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee on the ground that such motor vehicle are not capital goods for the appellant, Cenvat credit availed on the input services of renting of motor vehicle would not be admissible. 6. However, I find flaw in the above interpretation of appellate authority. He has rightly observed that the exclusion is only in respect of that motor vehicle which is not a capital goods. However, he has not extended the benefit to the assessee by observing that the same is not a capital goods for the appellant. A person who is receiving the input services of renting of immovable property, can never avail Cenvat credit of duty paid on the motor vehicles and as such motor vehicle can never be a capital good to the recipient of the said services. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on Hotel Accommodation and Rent a Cab service is admissible: Rent a Cab Service: 1. Aia Engineering Ltd. Vs. C.C.E. Ahmedabad-III, Fuinal Order No. A/11320/2018 dated 12.06.2018, CESTAT (A/bad) 2. M/s. Welspun Corp Limited vs. Commissioner of Central Excise and Customs, Service Tax, Vadodara, Final Order No. A/11000- 11001/2018 dated 08.05.2018, CESTAT, (A,bad) 3. M/s DCM Shriram Lt.d Vs. CCE ST- Vadodara-II, Final Order No. A/10834/2018 dated 25.043.2018, CESTAT (A/bad) 4. Commissioner of Service Tax, Chennai Vs. M/s Chennai Container Terminal Pvt. Ltd. 2018-TIOL-2411-CESTAT-MAD 5. Technocraft Industries India Pvt. Ltd. Vs. Commissioenr of Central Excise Thane-1 2018-TIOL-1738-CESTAT-MUM 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous doubt. There were various conflicting judgments on the said issue, the matter was referred to the larger bench in the case of ABV Ltd. 2009 (15) STR 23-Larger Bench and, thus, subsequently Hon ble Supreme Court in the case of Ultratech Cement Ltd. (supra) decided the issue. It is also a fact that the appellant was availing the credit relying on the Board s Circular dated 23.08.2017 which was not withdrawn by the Revenue. In these circumstances, malafied intention cannot be attributed to the appellant. Therefore, the demand for extended period is hit by limitation. The same is set aside being time barred. For the normal period in respect of courier services the demand will sustain only in respect of courier services which is used for rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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