2018 (7) TMI 1202 - AT - Central Excise

CENVAT Credit - input services - Outdoor Catering Service - Held that - In all the rulings pointed out by the ld. Counsel for the appellants Hon ble High Courts of Bombay Gujarat & Allahabad have held that Service Tax paid on Outdoor Catering Service when such services are availed by manufacturer for providing canteen facility to the workers as required by Factory Act were admissible as input service - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Cenvat credit eligibility for Service Tax paid on Outdoor Catering Service.

Analysis:
The judgment involves seven appeals arising from a common impugned Order-in-Appeal passed by the Commissioner, Central Tax (Appeals). The appellants, engaged in manufacturing various components, availed Cenvat credit for Service Tax paid on canteen services provided to workers as required by the Factory Act. The Revenue contended that such credit was not admissible, citing a Calcutta High Court ruling. The Commissioner (Appeals) agreed with Revenue, leading to the appeals before the Tribunal.

The appellant's counsel argued that the Calcutta High Court ruling was inapplicable as it pertained to Income Tax assessments, not Cenvat credit. They cited Bombay, Gujarat, and Allahabad High Court judgments supporting the admissibility of Cenvat credit for Outdoor Catering Service. The Tribunal, after considering the contentions, found the Commissioner (Appeals) reliance on the Calcutta High Court ruling misplaced. It noted that the Bombay, Gujarat, and Allahabad High Courts had held such Service Tax credit admissible when canteen services were provided as required by the Factory Act. Consequently, the Tribunal set aside the Order-in-Appeal and reinstated the Orders-in-Original, allowing all seven appeals.