2011 (9) TMI 792 - HC - Service Tax

Demand - Wheteher Cenvat credit under a rent-a-cab service and outdoor catering service, to respectively transport its employees to the factory and back and to provide food for them fall under the input services entitled to credit - The catering service, rent-a-cab and transportation services and the tax paid on the said services are stated as input services - Decided in favor of the assessee

Summary

The Karnataka High Court upheld the Tribunal's decision that service tax paid for rent-a-cab and catering services used to transport employees and provide food is eligible for input service credit. This ruling is based on a previous case where it was established that such services are considered input services for manufacturers. The appeal by the Revenue was dismissed.