2011 (4) TMI 821 - AT - Service Tax

Input service credit - Catering services - Held that - The issue has been already settled in the case of CCE vs. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT wherein held that input service credit availed by the assessee on outdoor catering is available subject to that the assessee does not charge anything from the employees (in case the cost of food supplied to the worker forms part of the assessable value) - As there is no allegation against the assessee that they have recovered any amount from the employees - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, Mumbai upheld the lower appellate authority's decision to allow input service credit on outdoor catering service. The Tribunal referenced a previous case to support their decision, stating that input service credit is available as long as the company does not charge anything from the employees for the food. Therefore, the revenue's appeals were rejected.