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2016 (5) TMI 1077 - CESTAT BANGALORE

2016 (5) TMI 1077 - CESTAT BANGALORE - TMI - Entitlement to the credit of service tax paid on Outdoor Catering Services and Staff Transport Services - Held that:- Since both the services on which cenvat credit has been denied by the impugned order are held to be input services by decisions of various High Courts, therefore in view of the settled position of law both the services i.e. Outdoor Catering service as well as Staff Transport Service fall in the definition of "input service" and the cre .....

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g Services and Staff Transportation Services by upholding the order-in-original. The brief facts of the present case are that the appellants are manufacturers of Rotogravarue Printing Cylinders falling under chapter heading 84425010 of schedule to Central Excise Tariff Act 1985 and are availing cenvat credit on inputs, input services, capital goods and paying the prescribed duty on the final product. During the course of EA 2000 audit of the central excise records in the month of March 2008, the .....

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ghty Nine only) and Staff Bus Transport Services amounting to ₹ 50,088/- (Rupees Fifty Thousand and Eighty Eight only) total is ₹ 74,877/- (Rupees Seventy Four Thousand Eight Hundred and Seventy Seven only). The said show-cause notice was adjudicated and the credit was denied and the appellant was also imposed an equal amount of penalty to the tune of ₹ 74,877/- (Rupees Seventy Four Thousand Eight Hundred and Seventy Seven only). Thereafter the appellant filed the appeal before .....

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ther submitted that both these services have been held to be input service by plethora of judgments rendered by various benches of the Tribunal as well as by various High Courts. As far as Outdoor Catering Service is concerned he placed reliance on the following judgments: a) CCE Vs. Resil Chemicals P Ltd. - 2014 (36) S.T.R. 1260 (Kar.) b) CCE Vs. Stanzen Toyotetsu I P Ltd. - 2011 (23) S.T.R. 444 (HC-KAR.) c) CCE Vs. Federal Mogul Goetze (I) Ltd. - 2011 (TIOL 650 (HC-P&H) d) CCE Vs. Ultratec .....

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ents of the jurisdictional High Court as well as other Tribunals on the very same issue of credit on Catering Service and the Staff Bus Services. He also submitted that it is settled law that the judgments of the higher authorities are binding on the lower authorities and they invariably are required to follow the same unless the judgment is distinguished or the operation of the order is suspended by the competent court of law. On the other hand the learned AR reiterated the findings of the lowe .....

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tax paid on Outdoor Catering Services and Staff Transport Services. Here it is pertinent to mention the definition of input service as contained in Rule 2(l) of the Cenvat Credit Rules 2004 which is reproduced herein below: (l) "input service" means any service,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final prod .....

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, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal 3.1. The assessee has availed the credit on these services considering the same as input services whereas as per the department Outdoor Catering Services as well as the Staff Transport Services would not be treated as input services as defined under Cenvat Credit Rules. The issue raised in the present appeal has been elaborately considered by the Bombay High Cour .....

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a rider that where the cost of food is borne by the worker, the manufacturer cannot take credit of that part of the service tax which is borne by the worker. In this case the learned counsel for the appellant has stated at bar that appellant has already reversed the credit on that portion which is borne by the worker and the disputed credit has been taken on the cost of food borne by the appellant. 13. The Hon ble High Court of Karnataka in the case of CCE Vs. Stanzen Toyotetsu India (P) Ltd. r .....

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ing 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. 14. Again the Karnataka High Court in the case of Resil Chemicals Pvt. Ltd. Vs. CCE, Bangalore - I reported in 2014 (36) STR 1260 (Kar.) and in the case of CCE, Bangalore Vs. Ace Designers reported in 2011-TIL-931-HC-Kar- .....

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atory for the employer to provide canteen services to the staff. Thus, the provision of canteen services is a statutory requirement. Provision of canteen services being indispensable, it is incumbent on a manufacturer of goods, to provide the same if he desires to run his factory. In view of the definition of input service which means any service used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products, the input service does not have to .....

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