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2010 (12) TMI 378 - AT - Service TaxCenvat credit - Input services - The appellants are engaged in the manufacture of electronic and electrical goods such as computer monitor, air conditioner, refrigerator and colour television sets - The appellants have utilised cafeteria/catering services by entering into contract with Outdoor Catering Services for the purpose of providing food and beverages to their workers. The appellants have more than 250 workers on their pay roll and as per Section 46 of the Factories Act, 1948, they are required to provide and maintain a canteen for the use of the workers - This is a mandatory requirement and failure to maintain such canteen facility attracts penal action - In the present case, it is not merely a case of inclusion of value of the services for the purpose of costing of the final products but it is to be noted that the services are required to be utilised mandatorily and the failure of which attracts penal action. Held that: the outdoor catering services utilised by the appellants have to be treated as ‘input services’ - Therefore, the appellants are eligible for the credit.
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