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TMI Blog2012 (12) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... – Held that:- Where a manufacturer avails outdoor catering service in compliance with the mandatory requirement under Section 46 of the Factories Act, it can be said to have been availed in relation to the business of manufacturing the final product. Section 46 of the Factories Act makes it obligatory for the manufacturer to maintain a canteen for their employees in the factory where the number of employees is 250 or more - cost of outdoor catering service to be included in the cost of production of the final product - admissibility of CENVAT credit on outdoor catering service shall be reexamined by the original authority - admissibility of CENVAT credit on outdoor catering service shall be reexamined by the original authority - E/1163/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacture of final products. 3. Rent-a-cab service was availed by the appellant for ferrying their employees between residence and factory. Outdoor catering service was employed to feed their employees in the factory canteen. Telephone service was utilized in connection with the business of manufacturing their final product. All the services were apparently availed in relation to the business of manufacturing the final product, but there must be rider to this finding in so far as outdoor catering service is concerned. As regards outdoor catering service, the Hon ble High Court in the case of Ultratech Cements Ltd. held thus: 32. As rightly contended by Shri Shridharan, learned Counsel for the respondent-assessee, in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly it is not a charity provided by the employer to the employees. It is an onerous legal obligation imposed on him. The cost incurred in rendering such service will be included in the cost of production. 5. In my view, what emerges from the above decisions is that, where a manufacturer avails outdoor catering service in compliance with the mandatory requirement under Section 46 of the Factories Act, it can be said to have been availed in relation to the business of manufacturing the final product. Section 46 of the Factories Act makes it obligatory for the manufacturer to maintain a canteen for their employees in the factory where the number of employees is 250 or more. The above decision of the jurisdictional High Court further require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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