COMMISSIONER OF CENTRAL EXCISE Vs. G.K. MOTORS

JUDGEMENT

(1.) THE respondent are engaged in sales of motor vehicles of M/s. FIAT India (P) Ltd. as their authorized dealer and are also authorized service station for servicing of the vehicle, for which they have taken service tax registration. During the period from 1 -4 -2005 to 31 -3 -2006, they took and utilized service tax credit of Rs. 84,818/ - in respect of GTA service, advertisement services, Insurance services, audit fee, Valuation charges, repair and maintenance, AC machine repairing, Courier service etc. received by them for use in their business. The department was of the view that since these services are not the input services for their output service, servicing of cars as authorized service station, they were not entitled for the Cenvat credit. Besides this, on scrutiny of their ST -3 returns it was found that there was delay in filing of their returns. On this basis, a show cause notice dated 6 -8 -2007 was issued to the respondent for - -

(2.) HEARD the SDR, Shri R.K. Gupta who assailed the impugned order reiterating the grounds of appeal in the Revenue's appeal and pleaded that since the respondent are engaged in trading activity of the cars and car parts and also servicing of the motor vehicles, the services, in question, in respect in which Cenvat credit has been taken, cannot be said to be the inputs only for their output service and substantial amount of the services availed by them are in connection with their trading activity and to that extent they would not be eligible for Cenvat credit.