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of <h1>Appellate Tribunal allows CENVAT credit for catering services, except for canteen recoveries.</h1> The Appellate Tribunal CESTAT Chennai allowed CENVAT credit for outdoor catering services used for factory employees, except for amounts recovered from ... CENVAT credit - Held that:- As certain amounts have been recovered from the employees in respect of the canteen services provided. To the extent of such recovery, CENVAT credit shall not be allowed. Only the unrecovered part shall get the benefit of CENVAT credit. The adjudicating authority shall re-compute the liability and issue proper demand notice to the appellant. Consequential benefit if any shall be permissible in accordance with law. The Appellate Tribunal CESTAT Chennai ruled that CENVAT credit for outdoor catering services used for factory employees is allowed, except for amounts recovered from employees for canteen services. The adjudicating authority needs to re-compute liability and issue a proper demand notice to the appellant.
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