Input service credit recognised for catering, clearing and forwarding, and outward transportation under settled precedent.

Credit of service tax on outdoor catering, clearing and forwarding, and outward transportation from the factory gate to customers was treated as admissible because each service was covered by settled precedent recognising eligibility as an input service in the relevant factual setting. The tribunal therefore accepted credit on all three categories and rejected the Revenue's challenge, applying the principle that where binding appellate and High Court authority already settles eligibility, the credit cannot be denied.

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Issues: (i) Whether credit of service tax paid on outdoor catering services was admissible; (ii) whether credit of service tax paid on clearing and forwarding services was admissible; (iii) whether credit of service tax paid on outward transportation from the factory gate to customers was admissible.

Issue (i): Whether credit of service tax paid on outdoor catering services was admissible.

Analysis: The issue was treated as already covered by binding appellate and High Court precedent accepting such credit.

Conclusion: Credit on outdoor catering services was admissible and the issue was decided in favour of the assessee.

Issue (ii): Whether credit of service tax paid on clearing and forwarding services was admissible.

Analysis: The issue was treated as settled by High Court authority holding clearing and forwarding agent services to be eligible for credit.

Conclusion: Credit on clearing and forwarding services was admissible and the issue was decided in favour of the assessee.

Issue (iii): Whether credit of service tax paid on outward transportation from the factory gate to customers was admissible.

Analysis: The issue was treated as covered by precedent recognising credit eligibility for outward transportation in the relevant factual setting.

Conclusion: Credit on outward transportation was admissible and the issue was decided in favour of the assessee.

Final Conclusion: All disputed credits were held admissible, leaving no merit in the Revenue's challenge.

Ratio Decidendi: Where the disputed services are covered by settled precedent and treated as eligible input services, credit of service tax thereon is admissible.

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