Under cenvat credit rules for the purpose of capital goods, Motor Vehicle (MV) has been included in three different categories , i.e
Rule 2(a) Capital Goods
First (A)..... (viii) > motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis but including dumpers and tippers
Second (B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for- (i) providing an output service of renting of such motor vehicle; or (ii) transportation of inputs and capital goods used for providing an output service; or (iii) providing an output service of courier agency”
Third (C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of- (i) transportation of passengers; or (ii) renting of such motor vehicle; or (iii) imparting motor driving skills
I understood second & third categories however, first category is not clear to me as is what sort of cases are covered i n case I.
Can anyone tell me the purpose of inclusion of first category of MV?
22 March 2015
Category A is for all types of assesses. It can be manufacturer or service provider. Thus, cenvat of motor vehicle covered under 8701, etc can be claimed by every assessee.
However in category B and C only specified service providers are allowed to claim cenvat on motor vehicle specified in 8702 8703 8704 and 8711.For further analysis and updations on Indirect taxation you can log in to our website www.indirecttaxprofessionals.com
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