2012 (5) TMI 447

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..... asure of welfare of the workers. The canteen facility also helps in furtherance of the manufacture. Thus, the caterer service has nexus or integral connection with the business of manufacture of final product and this would qualify to be input service under Rule 2(1) of Cenvat Credit Rules, 2004. Revenue's appeal is dismissed - E/1279/07, E/CO/239/07 - A/240-241/2011-WZB/C-IV(SMB) - Dated:- 29-6- .....

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..... r inputs, capital goods and input services. They availed CENVAT credit of Rs.3,96,044/- during the period March 2005 to March 2006 in respect of Service Tax paid on outdoor caterer's service provided by M/s Chintamani Caterers. The said credit was disallowed to them on the ground that the said service is not an input service. The lower adjudicating authority accordingly disallowed the credit and d .....

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..... ltratech Cement Ltd. (supra). 4. The contention of the learned JDR is that in para 39 of Hon'ble High Court in the case of Ultratech Cement Ltd. (supra) has held that once the service tax is borne by the ultimate consumer of the service, namely the worker, the manufacturer cannot take credit of that part of the service tax which is borne by the consumer. The learned Counsel counters the same .....

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..... ition of input service extends to services used prior to/during the course of/after the manufacture of the final products. The fact that the definition of 'input service' is wider than the definition of 'input' would make no difference in applying the ratio laid down in the case of Maruti Suzuki Ltd. (supra) while interpreting the scope of 'input service'. Accordingly, in the light of the judgment .....

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..... e. Thus, the caterer service has nexus or integral connection with the business of manufacture of final product and this would qualify to be input service under Rule 2(1) of Cenvat Credit Rules, 2004. The only contention raised by the Revenue now is that a certain portion of the caterer's service was borne by the workers. I find force in the contention of the respondent that this was never a part .....

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