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2014 (1) TMI 557 - AT - Service TaxAvailment of CENVAT Credit - Outdoor catering service - Held that:- Service Tax proposal is for denial of Service Tax credit on food and hospitality services rendered by hotel - The credit has been denied on the ground that Service Tax has been charged on the buffet dinner, mineral water also and such Service Tax credit cannot be allowed in Cenvat Credit Rules, 2004 - outdoor caterer service has a nexus or integral connection with the manufacture of final product. The view taken is that for benefit of cenvat credit in respect of input services, such services should be relatable to the manufacturing activity. It cannot be said that providing lunch/dinner to customers is not part of the business promotion and is not part of sale of manufactured goods. Without promoting the sale of the product, the manufacture also cannot take place. Therefore the activity can be definitely said to be relatable to the manufacture of the goods. Under these circumstances on merits I find that the appellant is eligible for the benefit of Cenvat credit - Following decision of Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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