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2015 (6) TMI 1091 - HC - Service TaxDenial of benefit of Cenvat credit - outdoor catering services - services provided in the factory for employees of the factory - whether the assessee can utilise the cenvat credit facilities in respect of outdoor catering services, provided in the factory for its employees and outward freight service as input service? - Held that: - In an identical circumstance, this Court dealt with the issue with regard to outdoor catering service, in the case of CCE V. Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT], where it was held that all services used in relation to the business of manufacturing the final product are covered under the definition of `input service' and in the present case, the outdoor catering services being integrally connected with the business of the manufacture of cement, credit of service tax paid out on catering services has been rightly allowed by the Tribunal. Outward freight charges - whether the services availed by a manufacturer for outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2 (1) (ii) of the CENVAT Credit Rules, 2004? - Held that: - reliance placed on the decision of the case of CCE V. ABB Ltd., Bangalore [2011 (3) TMI 248 - KARNATAKA HIGH COURT], where it was held that By notification No.10/2008-C.E.(N.T.) dated 1.3.2008, the words 'clearance of final products upto the place of removal' were substituted in the place of the words 'clearance of final products from the place of removal'. The intention of the legislature is thus manifest. Till such amendment, the words 'clearance from the place of removal' included transportation charges from the place of removal till it reached the destination, namely the customer. Therefore, the said input service was included in the early part of the definition 2(1)(ii). – Credit of service tax paid on outward transportation allowed prior to 1.4.2008. Appeal disposed off - decided in favor of assessee.
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