TMI Blog2009 (5) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... final products and clearance of final product from the place of removal, it was not entitled to the credit of same. In the light of the decision of CCE v. GTC Industries Ltd. 2008 -TMI - 31592 - CESTAT MUMBAI, held that all the activities on which credit taken by the assessee is related to the business activity, thus the appeal is allowed. - ST/138 OF 2007 - 1003 OF 2009 - Dated:- 10-5-2009 - M.V. RAVINDRAN, JUDICIAL MEMBER AND T.K. JAYARAMAN, TECHNICAL MEMBER Naresh Thackar for the Appellant. Ms. Sudha Koka for the Respondent. ORDER T.K. Jayaraman, Technical Member - This appeal has been filed against OIA No. 79/2006, dated 29-12-2006 passed by the Commissioner of Customs Central Excise-II, Hyderabad. 2. We heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to avail the Cenvat credit. The appellants are highly aggrieved over the impugned order and made several submissions. It was urged that the impugned order proceeds on a different ground from that of the show-cause notice. According to the show-cause notice the service tax was sought to be denied on the ground that the services were not received in the factory or that they are not related to business of the appellant. Whereas the impugned order has been passed on the ground that these services have not been used in or in relation to the manufacture of final products. The order passed on completely new grounds is illegal, erroneous and not maintainable. It was also argued that the Commissioner has not passed the order based on a correct de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) has elaborately dealt with this issue and it has been held that all services which are related to business activity would be entitled for the credit. The relevant findings of the Larger Bench are reproduced below : 9. We have considered the submissions. We find that it is well-settled that every clause of the Statute should be construed with reference to the context in which it is issued. A bare mechanical interpretation of words and application of legislative intent is devoid of concept and purpose will reduce most of the remedial and beneficial legislations to futility. To be literal in meaning is to see the skin and miss the soul. The Legislature never wastes its words or say anything in vain and a construction which attributes re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d industry. This note clearly states that 'in principle, credit of tax on those taxable services would be allowed that go to form a part of the assessable value on which excise duty is charged'. Expenses towards the canteen and provision of subsidized canteen forms part of the cost of production as is evident from the Para 4.1 of the CAS-4 which defines the phrase 'cost of production', and under the head 'Direct Wages and Salaries', subsidised food has also been considered as part of direct wages and salaries, being fringe benefits. The relevant parts of 4.1 and 5.2 of CAS-4 are reproduced as under : '4.1 Cost of Production : Cost of production shall consist of material consumed, Direct Wages and Salaries, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 92 of the Factories Act, 1948. A service tax on outdoor catering services is paid by the manufacturer for running the canteen, irrespective of the fact that a subsidised food is provided or not. Whether the cost of food is borne by the worker or by the factory, the same will form part of expenditure incurred by the manufacturer and will have a bearing on the cost of production. In view of the same, employment of outdoor caterer for providing catering services has to be considered as an input service relating to the business and Cenvat credit in respect of the same will be admissible. We, therefore, concur with the views of the Tribunal expressed in the case of Victor Gaskets India Ltd. v. CCE 2008 (10) STR 369 (Tri. - Mumbai). The refere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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