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2015 (3) TMI 560 - AT - Service TaxDisallowance of CENVAT Credit - Outdoor Catering service - Held that:- It has not been held by the Hon'ble Bombay High Court in the case of Ultra Tech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT] that outdoor catering service is allowable only in the case of more than 250 workers, as it was mandatorily required under the provisions of the Factories Act, 1948 for providing canteen services. It shows that the legislation appreciates the need of canteen service for the workers at the place of work. Only to avoid the hardship for an essential need, the legislation have provided, that atleast in factories having employees more than 250, should provide, that does not mean that the service was not required for any industrial service or organization having less than 250 workers. Even the employees of a smaller organization having less than 250 workers will also be hungry and required to be provided with canteen facility for the employees. Therefore, I hold that the ruling in the case of IFB Factories Ltd. (2013 (1) TMI 503 - CESTAT BANGALORE) per incuriam, as the provisions of Factories Act, have been wrongly interpreted, with respect to the provisions of input service. In view of my findings, I hold that the Respondent-assessee is entitled to Cenvat Credit in respect of outdoor catering service - Decided against Revenue.
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