2016 (12) TMI 1161 - AT - Central Excise

CENVAT credit - Outdoor Catering Services - Group Insurance Services - denial on the ground that these activities are not in relation to the appellant s manufacturing activity - Held that - In the case of Commissioner of Central Excise Nagpur v. Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT held that credit with respect to Outdoor Catering Services is admissible - Hon ble Karnataka High Court in the case of CCE & ST LTU Bangalore v. Micro Labs Ltd. 2011 (6) TMI 115 - KARNATAKA HIGH COURT also held that such credit on Group Insurance Services is admissible - credit allowed - decided in favor of appellant-assessee.

Summary

Issues: Denial of Cenvat Credit for 'Outdoor Catering Services' and 'Group Insurance Policy Services'

Analysis:
The appellant filed an appeal against the Order-in-Appeal denying Cenvat Credit of ?90,015/- for 'Outdoor Catering Services' and ?10,019/- for 'Group Insurance Policy Services'. The appellant argued that both activities are related to their manufacturing activity and thus, Cenvat Credit should be allowed. The appellant cited relevant case laws to support their claim, such as the Bombay High Court's decision in Commissioner of Central Excise, Nagpur v. Ultratech Cement Ltd. regarding 'Outdoor Catering Services' and various other case laws for 'Group Insurance Services'. The Revenue acknowledged that the case laws cited by the appellant were relevant to the issues at hand.

Upon hearing both parties and examining the case records, the Tribunal noted that the Bombay High Court had allowed Cenvat Credit for 'Outdoor Catering Services' in the Ultratech Cement Ltd. case. Additionally, the Tribunal observed that several case laws supported the admissibility of Cenvat Credit for 'Group Insurance Services', including a decision by the Hon'ble Karnataka High Court in CCE & ST, LTU, Bangalore v. Micro Labs Ltd. Therefore, based on the settled legal position and precedents, the Tribunal allowed the appeal and set aside the Order-in-Appeal that had denied the Cenvat Credit to the appellant.

In conclusion, the Tribunal ruled in favor of the appellant, allowing Cenvat Credit for both 'Outdoor Catering Services' and 'Group Insurance Policy Services' based on the legal principles established in relevant case laws and court decisions. The appellant's appeal was upheld, overturning the decision of the first appellate authority that had initially denied the Cenvat Credit.