2014 (4) TMI 837 - AT - Central Excise

Denial of CENVAT Credit - Outdoor catering service - Held that - waiver and stay can be granted to the appellant in this case inasmuch as all the significant facts were pleaded before the adjudicating authority as evidenced by the impugned order and these very facts have been reiterated before us at the Bar. Moreover the crucial mandatory requirement of maintaining canteen as per the provisions of Section 46 of the Factories Act has been specifically incorporated in the grounds of appeal - Stay granted.

Summary

Issues: Denial of CENVAT credit on outdoor catering service; Plea for waiver and stay of recovery

Denial of CENVAT credit on outdoor catering service:
The judgment revolves around the denial of CENVAT credit of Rs.16,58,941/- to the appellant for 'outdoor catering service' used in providing food in the factory canteen to workers during the material period. The appellant contended that the canteen facility was provided as mandated by Section 46 of the Factories Act, as they had over 250 workers during that time. The cost of services was included in the production cost of final products without recovery from employees. The appellant cited precedents Commissioner Vs Stanzen Toyotetsu India (P) Ltd. and Commissioner Vs Ultratech Cement Ltd. where CENVAT credit was allowed on similar grounds. The learned Superintendent (AR) opposed the stay application, arguing insufficient pleading of necessary facts in the appeal.

Plea for waiver and stay of recovery:
The Tribunal, after considering the submissions, found that all significant facts were pleaded before the adjudicating authority and reiterated during the proceedings. The mandatory requirement of maintaining a canteen under Section 46 of the Factories Act was specifically mentioned in the grounds of appeal. Consequently, the Tribunal granted waiver of predeposit and stay of recovery of adjudged dues as requested by the appellant. The judgment highlights the importance of presenting necessary facts and legal provisions in appeals for favorable outcomes.