TMI Blog2015 (1) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... yed less than 250 persons in the factory premises and therefore, the assessee is not entitled to the said benefit. In the aforesaid judgment of this Court, it is not laid down that to be eligible for the Cenvat credit, there should be an obligation under Section 46 of the Factories Act for the assessee to run a canteen. A canteen is run for the welfare of its employees to see that they get the bes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... framed on 7-1-2013 : 1. Whether the Tribunal is right in holding that a manufacturer of an industrial product cannot avail Cenvat credit in respect of cost incurred towards catering services provided by an outdoor caterer which food is sold to its employees engaged in the factory? 2. Whether the question of availment of such input credit would have been linked to the number of emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses 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. 4. This judgment has been noticed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be sustained. In fact, this question was gone into by the Principal Bench of CESTAT-II, New Delhi and at Paragraph No. 6, it has been held as under : As far as outdoor catering service is concerned, there is no law laid down anywhere that such service will be in relation to manufacture only if the number of employees is more than 250. In some of the decisions, the affected parties had argu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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