TMI Blog2011 (4) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal is dismissed - CEA NO. 95 OF 2010 - - - Dated:- 8-4-2011 - N. KUMAR AND RAVI MALIMATH, JJ. N.R. Bhaskar for the Appellant. B.N. Gururaj for the Respondent. JUDGMENT Ravi Malimath, J. This appeal is by the revenue being aggrieved by the order of the Tribunal, which held that the assessee is entitled to avail Cenvat credit towards outdoor catering services. 2. The assessee is a manufacturer of CNC lathes and components. During the course of audit, it was noticed that the assessee had availed Cenvat credit to the extent of Rs. 3,54,104/- of service tax paid on outdoor catering services (canteen service) during the period April 2007 to March 2008, Accordingly, a show cause notice dated 24.04.2008 was issued to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P.) Ltd. [2011] 32 STT 244/12 taxmann.com 101 disposed off on 08.04.2011. 5. While considering the issue whether the services utilised by the assessee is in the course of manufacturing of a final product or not, the Court held as follows: "As is clear from the definition any service used by the manufacturer whether directly or indirectly in or in relation to the manufacture of final products constitutes input service. Various services are set out in the definition expressly, as constituting input service. It also includes transportation of inputs or capital goods and outward transportation up to the place of removal. Therefore the test is whether the service utilized by the assessee is for the manufacture of final product. Such servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taken into consideration before fixing the price of the final product. It may be a welfare measure but certainly it is not a charity provided by the employer to the employees. It is an onerous legal obligation imposed on him. 11 and 12 ** ** ** 13. Therefore, merely because these services are not expressly mentioned in the definition of input service it cannot be said that they do not constitute input service and the assessee is not entitled to the benefit of CENVAT credit. In fact, Rule 3 of the Cenvat Rules, 2004, specifically provides that the manufacturer of final products shall be allowed to take credit. The service tax is leviable under Section 66 of the Finance Act and paid on any input service received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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