2010 (10) TMI 1151 - HC - Central Excise

Summary

Issues involved: Interpretation of Cenvat Credit Rules, 2004 regarding availing Cenvat credit on outdoor catering services provided in the factory for employees.

Summary:
The High Court of Bombay heard arguments from the Assistant Solicitor General for the appellant and the advocate for the respondent regarding the question of law related to availing Cenvat credit on outdoor catering services provided in the factory for employees. The issue was whether the respondent is entitled to avail the Cenvat credit on outdoor catering services as an input service credit despite it not falling under the definition of "input service" specified under Rule 2(l) of the Cenvat Credit Rules, 2004. The Court noted that the question raised in the appeal was covered by a previous decision and ruled in favor of the assessee, stating that if the Cenvat credit on outdoor catering services is recovered from the workers/employees, the Excise Authorities can initiate proceedings accordingly. The appeal was disposed of with this direction.