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2017 (9) TMI 919 - AT - Central ExciseCENVAT credit - input services - whether the respondents are eligible for Cenvat Credit on Catering Services and Office/Garden maintenance services utilized in their factory before 01.04.2011? - Held that - the Hon ble Bombay High Court in the case of CCE Nagpur Vs. Ultratech Cements Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT had held that Service Tax paid by the employer on the Outdoor Catering Services is eligible for Cenvat Credit. Garden/Office maintenance - Held that - the Tribunal in the case of CCE Vs. Lupin Ltd. 2012 (4) TMI 499 - CESTAT, MUMBAI has held that the input services for maintaining Garden and for Office maintenance are eligible for input services credit. Credit allowed - appeal dismissed - decided against Revenue.
Issues:
1. Eligibility of Cenvat Credit on Catering Services 2. Eligibility of Cenvat Credit on Office/Garden Maintenance Services Analysis: Issue 1: Eligibility of Cenvat Credit on Catering Services The appeal was against the order of the Ld. Commissioner (Appeals-II), Delhi, Gurgaon, regarding the availing of Cenvat Credit on Catering Service by the respondents, who are manufacturers of auto parts. The Ld. Commissioner (Appeals) allowed the benefit of Cenvat Credit based on judgments of the Hon’ble Bombay High Court and a Tribunal case. The Revenue contended that there was no nexus between the manufacturing activity and Catering Services. However, the Ld. Advocate for the respondents cited a Tribunal judgment supporting their claim. The Member (Technical) found that the issue was settled by previous judgments, including the Hon’ble Bombay High Court decision, and upheld the Ld. Commissioner (Appeals)'s order on the admissibility of credit for Catering Services. Issue 2: Eligibility of Cenvat Credit on Office/Garden Maintenance Services Regarding the eligibility of Cenvat Credit on Office/Garden maintenance services, the respondents argued that maintaining the garden in the factory was a statutory requirement under State Pollution Control Regulations. They clarified that the entire expense pertained to Garden maintenance services, which was not disputed by the Revenue. The Member (Technical) noted that the maintenance of the garden was indeed a statutory requirement and referred to a Tribunal case that supported the eligibility of input services credit for Garden and Office maintenance. Consequently, the Member (Technical) found no issue with the Ld. Commissioner (Appeals)'s decision on this matter. Ultimately, the appeal filed by the Revenue was dismissed as there was no merit in challenging the eligibility of Cenvat Credit for both Catering Services and Office/Garden maintenance services. In conclusion, the judgment by the Appellate Tribunal CESTAT CHANDIGARH upheld the eligibility of the respondents for Cenvat Credit on Catering Services and Office/Garden maintenance services, as supported by relevant legal precedents and statutory requirements.
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