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2018 (3) TMI 1276 - AT - Central ExciseCENVAT credit - Rent-a-Cab Operator Service - Outdoor Catering Service - whether the appellants are entitled to Cenvat Credit of ₹ 11,90,543/- of Service Tax paid on Rent-a-Cab Operator Service and Outdoor Catering Service of ₹ 5,24,328/- during the period July 2015 to Sept. 2015? Held that - As far as the credit of service tax paid on Rent-a-Cab Service used by the appellant in bringing the employees to the factory of the appellant for the period after 01.04.2011 the same cannot be held as an input service and allowed to credit in view of the specific exclusion containing the definition of amended input service - credit availed on Rent-a-Cab Service is not admissible. Outdoor Catering Service - Held that - the issue is covered by the judgement of this Tribunal in Reliance Industries Ltd case 2016 (8) TMI 123 - CESTAT MUMBAI , where it was held that In the absence of any such dispelling, it is to be held that these services on which CENVAT Credit have been availed are not for personal consumption of the employee but it was billed for service provided for business meetings, and credit is allowed - credit is admissible on the service tax paid on Outdoor Catering Service (Canteen Service) for providing it to the employees in their factory premises. Appeal allowed in part.
Issues involved:
Entitlement to Cenvat Credit of Service Tax paid on Rent-a-Cab Operator Service and Outdoor Catering Service. Analysis: The appeal was filed against an order passed by the Commissioner (Appeals) regarding the admissibility of Cenvat Credit of Service Tax paid on Rent-a-Cab Operator Service and Outdoor Catering Service. The main issue was whether the appellants were entitled to credit amounting to ?11,90,543 for Rent-a-Cab Service and ?5,24,328 for Outdoor Catering Service during a specific period. The appellant argued that the Rent-a-Cab Service was used for transporting staff to the factory, thereby improving employee productivity, and cited relevant tribunal decisions to support their claim. They also contended that the credit for Outdoor Catering Service used in providing canteen services to employees should be allowed based on previous tribunal judgments. The Revenue, represented by the Authorized Representative, supported the findings of the Commissioner (Appeals). Upon examination, the Tribunal found that the credit for Rent-a-Cab Service after a certain date could not be considered as an input service due to specific exclusions in the definition of input service. The definition excluded services related to renting a motor vehicle that is not a capital good. Consequently, the credit for Rent-a-Cab Service was deemed inadmissible. However, regarding the credit for Outdoor Catering Service, the Tribunal referred to a previous judgment involving Reliance Industries Ltd, where it was held that such services used for providing canteen services to employees were eligible for credit. Therefore, the Tribunal allowed the credit for Outdoor Catering Service (Canteen Service) provided to employees at the factory premises. As a result, the impugned order was set aside in part, disallowing credit for Rent-a-Cab Service and upholding the credit for Outdoor Catering Service. The appeal was disposed of accordingly.
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