2011 (8) TMI 699 - AT - Service Tax

Credit on Rent-a-Cab service - Held That - In View of CCE v. Ultratech Cement Ltd (2010 -TMI - 78203 - BOMBAY HIGH COURT) credit is admissible on Outdoor Catering Service , as there is no dispute that the assessees herein utilised the service for transportation of their employees from their residence to their company for official work.However where any amount has been recovered from the employee or the worker towards transportation charges and if so, credit to that extent is not admissible.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal by the assessees regarding disallowance of credit on 'Rent-a-Cab service'. The tribunal cited a judgment stating that credit is admissible if the service was used for official work transportation, but further investigation is needed to determine if any amount was recovered from employees for transportation. The case was remitted to the adjudicating authority for this purpose.