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TMI Blog2013 (12) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004. The original authority confirmed the demand and Commissioner (Appeals) upheld the order. 2. Appellant's first contention is that canteen building has two floors while the ground floor is used for storage of raw material the first floor is used as canteen. Thus the building is used for storage of input finished product also. The second contention is that providing the canteen is statutory requirement under the Factories Act. Due to this legal position, canteen has to be considered as integral part of the factory and cannot be considered as outside the factory. In any case the ground floor of the building is used for storage raw material, and therefore they are covered by the definition of "input services" and are eligible to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed the building to be only for canteen purpose. It is only at that time of adjudication that they claimed that ground floor is being used for storage of raw material. 4. I have considered the submissions of both the side. The definition of input service as contained in Section 2(1) reads as under:- "(i) input service" means any service - (ii) used by a provider of taxable service for providing an output service; or (iii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, "and includes" services used in relation to setting up, modernization, renovation or repairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Ld. A.R. that factory has to be limited to the area where the goods are to be produced. Other area which are required for ancillary support work such storing of raw material, finished products and other materials including canteen would be part of the factory. Moreover under Section 46 of the Factories Act, 1948, it is mandatory for the employer to provide canteen service to the staff. Even in Central Excise when registration is granted to a factory it is not limited to the manufacturing area but is to the entire campus which would include the canteen also. 5. In the context of whether outdoor catering services provide in factory canteen would be eligible to be considered as input service or not Hon'ble High Court of Gujarat in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses 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." 6. In view of the judgment of the Hon'ble Courts as also the analysis in para 5 relating to the definition of input services and factory, I hold that appellant could be eligible to take the input service credit relating to construction services at the material time i.e. July 2005. The definition of input service has undergone change w.e.f 1.3.2011, the situation may not be the same from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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