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TMI Blog2009 (6) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicating authority after considering the submissions made by the appellant before him confirmed the demand and also imposed penalties. On an appeal, Commissioner (Appeals) also came to the same conclusion and rejected the appeal filed by the appellant. In the light of the decision of CCE v. Cable Corpn. of India Ltd. [2009] 19 STT 158 (Mum. - CESTAT) held that order of Commissioner (Appeals) is liable to set aside and appeal is allowed. - ST/435/2008 - 936 OF 2009 - Dated:- 11-6-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER K.S. Ramesh for the Appellant. K.S. Srinivasa for the Respondent. ORDER 1. This appeal is directed against the OIA No. 03/2008(H-I) ST, dated 28-5-2008. 2. The relevant facts that arise for consideration ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority and as well as findings of Commissioner (Appeals). 5. I have heard both sides and perused the records. I find that the issue involved in this case is regarding the denial of the Cenvat Credit of the Service Tax paid on the input services like canteen services and rent-a-cab services. It is not disputed that the appellants are receiving the services in their factory premises. If that be so, then the decision of the Larger Bench in the case of GTC Industries Ltd. (supra) would cover the issue in favour of the appellant as regards catering services. I reproduce the said ratio as under :— "9. We have considered the submissions. We find that it is well-settled that every clause of the Statute should be construed with reference to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ached to these words or expressions. The context in which and the purpose for which the credit rules have been issued are clear from the Press Note dated August 12, 2004 issued by the Ministry of Finance, prior to introduction of the credit rules wherein the draft rules were circulated for inviting comments from trade and industry. This note clearly states that 'in principle, credit of tax on those taxable services would be allowed that go to form a part of the assessable value of which excise duty is charged'. Expenses towards the canteen and provision of subsidized canteen forms part of the cost of production as in evident from the Para 4.1 of the CAS-4 which defines the phrase 'cost of production', and under the head 'Direct Wages and Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kers under section 46 of the Factories Act, 1948, it is mandatory on the part of the factories to provide a canteen facility within the factory premises and failure to comply with the provisions of section 46 attracts prosecution and penalty under section 92 of the Factories Act, 1948. A service tax on outdoor catering services is paid by the manufacturer for running the canteen irrespective of the fact that a subsidised food is provided or not. Whether the cost of food is borne by the worker or by the factory, the same will form part of expenditure incurred by the manufacturer and will have a bearing on the cost of production. In view of the same, employment of outdoor caterer for providing catering services has to be considered as an inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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