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TMI Blog2016 (5) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... . 20316 / 2016 - Dated:- 9-5-2016 - SHRI S.S. GARG, JUDICIAL MEMBER For the Petitioner : Shri R. Kumarvel, Cost Accountant For the Respondent : Shri Ajay Saxena, AR ORDER PER: S.S. GARG The present appeal is directed against the order of the Commissioner (Appeal) dated 16.07.2012 denying the cenvat credit on Outdoor Catering Services and Staff Transportation Services by upholding the order-in-original. The brief facts of the present case are that the appellants are manufacturers of Rotogravarue Printing Cylinders falling under chapter heading 84425010 of schedule to Central Excise Tariff Act 1985 and are availing cenvat credit on inputs, input services, capital goods and paying the prescribed duty on the final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in or in relation to business are covered in the input service and cenvat credit is available on that. He further submitted that both these services have been held to be input service by plethora of judgments rendered by various benches of the Tribunal as well as by various High Courts. As far as Outdoor Catering Service is concerned he placed reliance on the following judgments: a) CCE Vs. Resil Chemicals P Ltd. - 2014 (36) S.T.R. 1260 (Kar.) b) CCE Vs. Stanzen Toyotetsu I P Ltd. - 2011 (23) S.T.R. 444 (HC-KAR.) c) CCE Vs. Federal Mogul Goetze (I) Ltd. - 2011 (TIOL 650 (HC-P H) d) CCE Vs. Ultratech Cements Ltd. - 2010 (20) S.T.R. 577 (Bom.) Whereas with regard to cenvat credit on Staff Transport service he relied upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the definition of input service as contained in Rule 2(l) of the Cenvat Credit Rules 2004 which is reproduced herein below: (l) input service means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit has been taken on the cost of food borne by the appellant. 13. The Hon ble High Court of Karnataka in the case of CCE Vs. Stanzen Toyotetsu India (P) Ltd. reported in 2011 (23) STR 444 (Kar.) has also concurred with the above said principle and held as follows: 12. It is in this context that when the assessee provides outdoor canteen facilities because of a statutory obligation imposed on him under Section 46 of the Factories Act, it becomes a condition of service as far as the employees are concerned. He has paid the service tax on outdoor canteen services. The said expenses incurred by the assessee will also be taken into consideration before fixing the price of the final product. It may be a welfare measure but certainly it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a service which is only indirectly used in relation to the manufacture of final products. In the circumstances, canteen services which are indispensable in relation to manufacture of the final products, would certainly fall within the ambit of input service as defined under the Rules. 16. Following the above-said decision of the Gujarat High Court, the Allahabad High Court in the case of Commissioner of Central Excise Vs. M/s. HCL Technologies, reported in 2014-TIOL-2001-HC-ALL-CX held as follows: The next category is Outdoor Catering Services. The Commissioner furnished a cogent justification for allowing the cenvat credit save and except for a partial disallowance in respect of the consumption of alcoholic beverages. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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