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TMI Blog2016 (5) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant in so far as credit of CHA services is concerned. In view of the decision of Larger Bench of this Tribunal in the case of CCE, Mumbai-V Vs GTC Industries Ltd. [2008 (9) TMI 56 - CESTAT MUMBAI], the credit of Outdoor Catering Services in the proportion in which the expenditure is borne by the appellant would be admissible to them. However, proportion of Service Tax in respect of the cost of such catering services borne by the employees of the appellant would not be admissible. - Decided partly in favour of appellant - Appeal No. E/1306 & 1413/11 - Order No.A/87405-87406/16/SMB - Dated:- 27-4-2016 - SHRI RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri Ashutosh Nath, AC (AR) For the Respondent : Shri D.H. Nadkarni, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices needs to be allowed. He also relied on the decision of Hon'ble High Court of Gujarat in case of Dynamic Industries Ltd. - 2014 (307) ELT 15 (Guj) and the decision of Tribunal in case of JSW Steel Ltd. - 2014 (36) STR 801 (Tri). In respect of the Outdoor Catering Services, he relied on the decision of GTC Industries Ltd. - 2008 (12) STR 468 (Tri-LB). He argued that their factory is covered by the Section 92 of the Factories Act, 1948 and hence it is mandatory for them to provide canteen services. He, however, clarified that the part of the cost of the catering is borne by M/s Apar Industries Ltd. and balance is borne by the employees. 4. Learned AR relied on the impugned order for the purpose of Outdoor Catering Services. He ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 input service relating to the business and Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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