Factory canteen outdoor catering qualifies as input service prima facie, supporting Cenvat credit and stay of recovery pending appeal.

Outdoor catering services used for a factory canteen were treated as prima facie qualifying as input service under Rule 2(1) of the Cenvat Credit Rules, 2004, following earlier Tribunal and Larger Bench decisions. On that basis, Cenvat credit on service tax paid for the canteen service was regarded as prima facie admissible. The Tribunal also found a strong prima facie case for interim relief and dispensed with pre-deposit of the disputed tax, interest, and penalty while staying recovery pending disposal of the appeal.

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Issues: Whether Cenvat credit on service tax paid for outdoor catering services used for a factory canteen was admissible, and whether pre-deposit and recovery of the disputed tax and penalty should be stayed pending appeal.

Analysis: The dispute concerned credit on outdoor catering services availed for employees' canteen facility in the factory. The Tribunal treated the issue as covered by earlier Tribunal and Larger Bench decisions holding that outdoor catering services used in such circumstances qualify as input service under Rule 2(1) of the Cenvat Credit Rules, 2004. On that basis, the appellant was held to have made out a strong prima facie case for waiver of pre-deposit.

Conclusion: Cenvat credit was held to be prima facie admissible on the outdoor catering services, and pre-deposit of the disputed tax, interest, and penalty was dispensed with while recovery was stayed pending disposal of the appeal.

Ratio Decidendi: Outdoor catering services availed for a factory canteen may constitute input service for Cenvat credit purposes, and a strong prima facie case on that question can justify waiver of pre-deposit and stay of recovery.

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