2016 (6) TMI 1120 - AT - Central Excise

Cenvat credit - service tax paid on Outdoor Catering Services - used indirectly in or in relation to the manufacture and activities related to business of manufacture - Held that - in view of the settled position as held in the various judgments cenvat credit on Outdoor Catering Service is allowed. - Decided in favour of appellant with consequential relief

Summary

Issues:
- Denial of cenvat credit on 'Outdoor Catering Services' by the Commissioner (Appeals)

Analysis:
The judgment revolves around the denial of cenvat credit on 'Outdoor Catering Services' by the Commissioner (Appeals). The appellant contended that the service was indirectly used in or in relation to the manufacture and business activities, making it eligible for cenvat credit under the definition of 'input services' in Rule 2(l) of the Cenvat Credit Rules 2004. The appellant relied on the precedent set by the Tribunal in Bell Ceramics Ltd. Vs. CCE, where cenvat credit on similar services was allowed, even when the number of employees was less than 250. This decision was further upheld by the Hon'ble High Court of Karnataka. Additionally, the appellant cited several other cases where cenvat credit on 'Outdoor Catering Services' was permitted, reinforcing the argument for allowing the credit in this instance.

The judgment highlights the importance of the precedents set in previous cases, emphasizing the consistency in allowing cenvat credit on 'Outdoor Catering Services'. By referencing the decisions in Semco Electricals Pvt. Ltd. Vs. CCE, Millipore India Ltd. Vs. CCE, CCE, Delhi-III Vs. Suzuki Powertrain India Ltd., and CCE Vs. Millipore India P. Ltd., the appellant strengthened their case for the eligibility of cenvat credit in the present appeal. The Tribunal, in line with the established legal position and precedents, allowed the appeal of the appellant by setting aside the order of the Commissioner (Appeals) and granting consequential relief, if applicable.

In conclusion, the judgment serves as a reaffirmation of the consistent interpretation and application of the law regarding cenvat credit on 'Outdoor Catering Services'. The reliance on past decisions and the alignment with the definitions provided in the relevant rules underscore the importance of legal precedents in shaping current judgments and ensuring uniformity in legal outcomes.