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TMI Blog2012 (5) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by the outdoor caterers. In a show-cause notice issued on 24/03/2009, the Assistant Commissioner of Central Excise having jurisdiction over the respondent's factory (manufacturing Aluminium profiles) proposed to recover the above credit of Rs.2,57,650/- from the respondent under Section 11A of the Central Excise Act, 2004 (the Act) read with Rule 14 of the CCR, to levy interest thereon under Section 11AB of the Act read with Rule 14 ibid, and to impose penalties on the noticee under Section 11AC of the Act and Rule 15(3) of the CCR. The respondent contested the demands both on merits and on limitation. In adjudication of the dispute, the Assistant Commissioner passed the following order:- ORDER i) I deny the credit of Rs.2,57,650/- ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the Department before the Hon'ble Bombay High Court against the Tribunal's decision in GTC Industries case, the case was remanded to the Tribunal for fresh decision in the light of Commissioner Vs. Ultratech Cements Ltd. [2010 (20) STR 577 (Bom.)]. Ld. Counsel further submits that, in the case of Ultratech Cements Ltd., the Nagpur Bench of the Hon'ble Bombay High Court had allowed CENVAT credit on outdoor catering service to the assessee after holding the said service to be an 'input service' as defined under Rule 2(l) of the CCR. Ld. Counsel finally relies on a judgment of the Hon'ble High Court of Karnataka viz. judgment dt. 8/4/2011 in Central Excise Appeal No.96 of 2009 and connected appeals (CCE, Bangalore-III Vs. Stanzen Toyot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on outdoor canteen services. The said expenses incurred by the assessee will also be 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. The cost incurred in rendering such service will be included in the cost of production. 13............ 14............ 15. 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. Infact, Rule 3 of the Cenvat Rules, 2004 specifically provides that the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory as it proceeded on the premise that outdoor catering service was not covered by the definition of 'input service'. Though the appellate authority held the service to be a input service, it did not advert to the statutory obligation, if any, of the respondent under the Finance Act. These are the circumstances which warrant remand of the case to the original authority.
5. The orders of the lower authorities are set aside and this appeal and cross-objection are allowed by way of remand with a direction to the original authority to take fresh decision on the substantive issue and the limitation issue in accordance with law and the principles of natural justice.
(Pronounced and dictated in open Court) X X X X Extracts X X X X X X X X Extracts X X X X
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