N R Agarwal Industries LTD Vs C.C.E. & S.T. (CESTAT Ahmedabad)
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 capital goods.
Since the Motor Vehicle was held to be a capital goods, the eligibility of Cenvat credit on Rent-a-Cab service shall not be hit by the exclusion clause provided under Rules 2(l) of Cenvat Credit Rules, 2004. In the present case also the vehicle taken on rent is defined as capital goods in terms of Rule 2(a) of the Cenvat Credit Rules, 2004, therefore, the exclusion clause is not applicable in the present case.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that whether the appellant is entitled for Cenvat credit in respect of Rent-a-Cab service or otherwise. Both the lower authorities have denied the Cenvat credit on the said service on the ground that the Rent-a-Cab service is excluded from the purview of definition of input service.
2. Shri. S. Suriyanarayana, learned Counsel appearing on behalf of the appellant submits that the exclusion is not simpliciter in respect of Rent-a-Cab service but it is only subject to condition that the Motor Vehicle which is taken on rent is not a capital goods. He submits that the identical issue has been decided in the various judgments by this Tribunal in the following judgments:-
