CENVAT credit on outdoor catering service allowed where cost-recovery allegation was outside the show-cause notice.

CENVAT credit on outdoor catering service used to serve employees was held admissible, and the departmental objection failed. The denial based on an alleged recovery of part of the catering cost from employees could not be sustained because that allegation was not made in the show-cause notice, so the objection was beyond its scope. The issue was also covered by a cited High Court decision in favour of the assessee, supporting eligibility of credit on the catering service.

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Issues: Whether CENVAT credit on outdoor catering service used for serving food to employees during the period of dispute was admissible, and whether a denial of credit could be sustained on the ground that part of the service cost was recovered from employees when that allegation was not made in the show-cause notice.

Analysis: The objection that credit was inadmissible unless the assessee proved that no part of the catering cost was recovered from employees was held to be beyond the scope of the show-cause notice, because no such allegation had been raised in the notice. The issue was also covered by the cited High Court decision in favour of the assessee.

Conclusion: The assessee was held entitled to CENVAT credit on the outdoor catering service, and the departmental objection failed.

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