2015 (11) TMI 715 - AT - Service Tax

Denial of CENVAT Credit - Outdoor Catering Service - Held that -manufacturer is entitled to avail the credit on Outdoor Catering Service. But, the manufacturer is not eligible to avail the credit in case, where the cost of the food is borne by the worker. In view of that, the impugned order is modified in so far as, in case, the cost of food is borne by the workers, the respondent is not eligible to avail credit. - Appeal disposed of.

Summary

The Revenue appealed against the Commissioner (Appeals) order setting aside an adjudication order denying Cenvat Credit on Outdoor Catering Service. The Tribunal found that the manufacturer can avail credit on Outdoor Catering Service, except when the cost of food is borne by the worker, as per the decision of the Hon'ble Gujarat High Court in a previous case. The appeal by the Revenue was disposed of accordingly.