9911796707
TMI Blog2022 (3) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... .2 The appellant is engaged in the manufacture of Automotive and Industrial chains, Parts and accessories of motor vehicle steel tubes and is registered with the Central Excise Department. Appellant availed cenvat credit on various inputs and input services which are used in the manufacture of the final products. In compliance of provisions of the Factories Act, 1948 and the Tamil Nadu Factories Rules, 1950, the appellant has been providing canteen facilities to its employees working in the factory. For providing such canteen services (outdoor catering service) the appellant engages third-party caterers. As per the terms of the contract, the appellant agrees to pay a predetermined sum towards food provided by the caterer to the employees. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegral to the manufacturing activity and appellant is not rendering the service for the employees' personal use and consumption. It is submitted that once the appellant recovers some money in the form of consideration from the employees for these canteen services, it cannot be termed as being provided for personal use or consumption. He relied on the decision in the case of Hindustan Coca Cola Beverages Pvt. Ltd. Vs CCE - 2014 (12) TMI 596 - CESTAT Mumbai; Roca Bathroom Products (P) Ltd. V CCE - 2018 (11) TMI 1446 - CESTAT Chennai to argue that cenvat credit is admissible if input services are availed for compliance of statutory requirements. 2.5 The decision in the case of Ganesan Builders Ltd. Vs CCE - 2018-VIL-475-MAD-ST and Rane TRW St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat credit on outdoor catering services would be ineligible only if the services are availed for personal use / consumption of the employees. Since the canteen services were provided in compliance of the statutory requirement, they have availed the credit. 3. Ld. A.R Shri Arul C. Durairaj appeared for the department. He supported the findings in the impugned order. 4. Ld. A.R relied upon the Tribunal's Larger Bench decision in the case of Wipro Ltd. (supra) and submitted that the Tribunal has held that credit is not eligible on outdoor catering services after 01.04.2011. The relevant paragraphs of the decision of the Larger Bench relied by the Ld. A.R are reproduced as under : "7.1 Further, we find that there is no dispute about the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of inputs or input services which are being rationalized by laying down clear definition so that the scope of inputs and input services that are eligible and those that are not, is clear. Further, we also find from the clarification issued by the Joint Secretary (TRU) explaining the intention of the legislature for the changes brought by way of amendment in the definition of 'input service'. Further, we also note that primarily the service should be first covered under the definition of 'input service' and once the service is not covered due to exclusion clause irrespective of the fact whether the cost of service has been taken as expenditure in the books of accounts does not render the services as an admissible for CENVAT credit. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
