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2015 (1) TMI 948 - HC - Service TaxCENVAT Credit - Outdoor catering service - Held that:- judgment [2011 (4) TMI 201 - KARNATAKA HIGH COURT] has been noticed by the Tribunal but the relief sought was denied to the assessee on the ground that the assessee has employed less than 250 persons in the factory premises and therefore, the assessee is not entitled to the said benefit. In the aforesaid judgment of this Court, it is not laid down that to be eligible for the Cenvat credit, there should be an obligation under Section 46 of the Factories Act for the assessee to run a canteen. A canteen is run for the welfare of its employees to see that they get the best food and they are able to perform well in the factory premises, which has a direct nexus with the production of the goods and therefore, all input tax which results in the production of the goods is to be given set off by way of Cenvat credit. Therefore, the finding recorded by the Tribunal cannot be sustained. - Thus., this is the correct legal position. In that view of the matter, the impugned order passed by the Tribunal is liable to be set aside. - Decided in favour of assessee.
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