Karnataka HC Upholds Tribunal Decision Allowing Input Service Credit for Rent-a-Cab & Catering Services

The Karnataka HC upheld the Tribunal's decision allowing input service credit for service tax paid on rent-a-cab and catering services for employee transportation and food provision. The Revenue's appeal was dismissed.

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The Karnataka High Court upheld the Tribunal's decision that service tax paid for rent-a-cab and catering services used to transport employees and provide food is eligible for input service credit. This ruling is based on a previous case where it was established that such services are considered input services for manufacturers. The appeal by the Revenue was dismissed.

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