2010 (11) TMI 1002 - HC - Service Tax

CENVAT credit - canteen services - whether Service tax paid on canteen services is input service in manufacture of final product ? - Held that - the questions raised in this Appeal are covered by the judgment of this Court in the case of The Commissioner of Central Excise Nagpur v. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT where it was held that the definition of input service is not restricted to services used in or in relation to manufacture of final products but extends to all services used in relation to the business of manufacturing the final product and allowed credit on canteen services - matter is restored to the file of CESTAT who will decide the questions raised in this Appeal in accordance with the decision of this Court in the case of Ultratech Cement Ltd. - appeal allowed by way of remand.

Summary

The Bombay High Court allowed an appeal regarding the question of whether service tax paid on canteen services is an input service in the manufacture of the final product. The court referred to a previous judgment and quashed the impugned order, restoring the matter to the CESTAT for further consideration. The appeal was disposed of with no order as to costs.