2018 (2) TMI 2108 - AT - Central Excise

CENVAT Credit - capital goods - input services - Outdoor Catering services - period from April 2011 to February 2012 - HELD THAT - It is found that though the Larger Bench vide in M/S. WIPRO LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE BANGALORE-III. 2018 (4) TMI 149 - CESTAT BANGALORE - LB has held that Outdoor Catering after 01.04.2011 is not an input service and therefore cenvat credit is not available but in the present case one of the invoices is prior to 01.04.2011 and service tax of Rs. 34, 315.91 was paid on Catering Services prior to 01.04.2011 and therefore in view of the decision of the Tribunal in the case of HINDUSTAN COCA COLA BEVERAGES PVT. LTD. VERSUS C.C.E. S.T. MEERUT-II 2015 (11) TMI 717 - CESTAT NEW DELHI it is opined that the appellant is entitled to the cenvat credit of Rs. 34, 315.91 as the same relates to the period prior to 01.04.2011. The appeal is allowed.

Summary

Issues:
- Irregular availment of cenvat credit on Outdoor Catering
- Disallowance of service tax credit and imposition of penalty
- Interpretation of 'input service' post 01.04.2011
- Applicability of cenvat credit for services rendered before 01.04.2011

Analysis:
The appeal pertains to the irregular availment of cenvat credit on Outdoor Catering by the appellants, leading to the disallowance of service tax credit and imposition of a penalty by the original authority, which was upheld by the Commissioner (Appeals). The issue revolved around the interpretation of 'input service' post 01.04.2011. The appellant argued that a portion of the services rendered and consumed before 01.04.2011 should be eligible for cenvat credit based on a Tribunal decision and a Board's Circular. The learned counsel highlighted that the Larger Bench had clarified that Outdoor Catering post 01.04.2011 does not qualify as an 'input service'. However, in this case, an invoice dated prior to 01.04.2011 for Catering Services had service tax paid on it. Citing the decision in the case of Hindustan Coca Cola Beverages, the Tribunal held that the appellant is entitled to cenvat credit for the amount paid before 01.04.2011, amounting to Rs. 34,315.91.

The Tribunal, after hearing both parties and examining the records, acknowledged the Larger Bench's ruling regarding Outdoor Catering post 01.04.2011 not being an 'input service'. Nonetheless, the Tribunal found merit in the appellant's argument concerning the payment made for Catering Services before 01.04.2011, as supported by the decision in Hindustan Coca Cola Beverages case. Consequently, the Tribunal allowed the appeal to the extent of Rs. 34,315.91, representing the cenvat credit amount pertaining to services rendered prior to 01.04.2011. The operative portion of the order was pronounced in Open Court on 22/02/2018.