TMI Blog2011 (9) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Order-in-appeal No. PIV/SK/189/2009, dated 21-8-2009. 2. The brief facts of the case are that M/s. Bosch Chassis Systems India Ltd. (hereinafter referred to as respondent) had availed CENVAT Credit of Rs. 3,46,167/- of Service Tax paid on the Outdoor Catering service during the period from January 2008 to May 2008. The department was of the view that Outdoor Catering Services were not eligible to be treated as an input services as they were not in or in relation to manufacture of final products and were also not included in the illustrative list contained in the definition of input service in Rule 2 of the CENVAT Credit Rules, 2004. A show-cause notice was therefore issued to the respondent asking them why the CENVAT Credit should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax paid on outdoor catering service is not admissible to the assessee. He, therefore, requested that order-in-appeal passed by the ld. Commissioner (Appeals) needs to be set aside. 5. The learned Advocate appearing for the respondent submitted that the Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I v. Ferromatik Milacron India Ltd. reported in 2011 (21) S.T.R. 8 (Guj.) has held that the outdoor catering service provided in the factory canteen which is mandatory for the employer to provide canteen services to staff under Factories Act. Service is indirectly used in relation to manufacture of final product. He therefore contended that the Commissioner (Appeals) has rightly allowed the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airly conceded to the above position in law and in fact filed an affidavit affirmed by a responsible officer of the assessee wherein it is stated that the proportionate credit to the extent embedded in the cost of food recovered from the employee/worker has been reversed . In view of this, once the service tax is borne by the ultimate consumer of the service, namely the worker, the manufacturer cannot take credit of that part of the service tax. The Tribunal in the case of Titan Industries Ltd. followed this decision of the Hon ble Bombay High Court and has held once the tax is borne by the ultimate consumer of the services, namely the workers manufacturer could not take the credit of that part of the service tax. 7. As regards the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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