2015 (11) TMI 1254 - AT - Service Tax

CENVAT Credit - whether the appellant is eligible for Cenvat credit of service tax paid on Outdoor Catering Service and for the service provided to their employees for transportation by buses - Held that - As regards the Outdoor Catering Service , the issue is covered by decision of the Hon ble High Court of Mumbai in the case of Commissioner of Central Excise, Nagapur vs. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT . The authorized representative also submits that they have already reversed proportionate credit attributable to the amount recovered from their employees for providing outdoor catering service . In view of above, the appellant is eligible for Cenvat credit of service tax paid on outdoor catering service also - impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
1. Eligibility for Cenvat credit of service tax paid on 'Outdoor Catering Service'
2. Eligibility for Cenvat credit of service tax paid on transportation service provided to employees

Analysis:
1. The first issue in this appeal pertains to the eligibility of the appellant for Cenvat credit of service tax paid on 'Outdoor Catering Service.' The authorized representative of the assessee relied on a decision of the Hon'ble High Court of Mumbai in the case of Commissioner of Central Excise, Nagapur vs. Ultratech Cement Ltd. The representative also mentioned that the appellant had already reversed proportionate credit related to the amount recovered from employees for providing this service. Consequently, the appellant was deemed eligible for the Cenvat credit of service tax paid on 'Outdoor Catering Service.'

2. The second issue revolves around the eligibility of the appellant for Cenvat credit of service tax paid on the transportation service provided to their employees. The authorized representative of the assessee referred to a decision of the Hon'ble High Court of Karnataka in the case of Commissioner of Central Excise, Bangalore-III vs. Tata Auto Comp Systems Ltd. The representative's argument was accepted, leading to the conclusion that the appellant is indeed eligible for the credit of service tax paid on transportation service for employees.

In conclusion, the impugned order was set aside, and the appeal was allowed with any consequential relief to the appellant. The judgment provided clarity on the eligibility of the appellant for Cenvat credit on both 'Outdoor Catering Service' and transportation services for employees, citing relevant decisions of the Hon'ble High Courts to support the findings.