M/s. Wipro Enterprises Versus Commissioner of GST & Central Excise, Chennai Outer
Central Excise
2018 (12) TMI 1159 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 12-12-2018
Appeal Nos. E/41397 And 41398/2018 – Final Order Nos. 43081-43082 / 2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
For The Appellant : Shri R. Rajesh, Authorized Rep.
For The Respondent : Shri L. Nandakumar, AC (AR)
ORDER
The appellant is aggrieved by the disallowance of credit on rent-a-cab service.
2. On behalf of the appellant, Shri R. Rajesh, Head – Taxation of the appellant-company appeared and argued the matter. He submitted that the appellant is engaged in manufacture of hydraulic cylinders and part thereof. They hav
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retational and also during transitional period, when the amendment was introduced to the definition of input services, he pleaded that the penalties may be waived.
3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He submitted that for the first three months upto 31.3.2011, the appellant is eligible for credit. Thereafter, the definition of input services has been amended and has excluded the services related to motor vehicles and the appellant could be eligible for credit only if such motor vehicles are capital goods for the service provider. He therefore submitted that the credit has been rightly disallowed.
4. Heard both sides.
5. The period involved is from January 2011 to March 2013. Ld. AR is fair enoug
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hat the motor vehicles are capital goods for the service provider for the period from 1.4.2011 to 31.3.2013, I am of the view that credit is ineligible and the demand for the said period is therefore upheld.
6. The appellant has also pleaded to waive the penalties. Taking into consideration the fact that the issue is interpretational and also transitional period, I am of the view that the penalties imposed are unjustified. The impugned order is modified to the extent of allowing the credit for the period upto 31.3.2011 and also waive the penalties imposed without disturbing the demand or interest from 1.4.2011 to 31.3.2013. The appeals are partly allowed in the above terms with consequential benefit if any.
(Dictated and pronounced in ope
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