Cenvat credit on factory canteen catering services is admissible where binding precedent squarely supports the claim.

Service tax paid on outdoor catering services used in a factory canteen is admissible as cenvat credit where binding Gujarat HC precedent squarely covers the issue. The Tribunal accepted that the Revenue's attempted factual distinctions did not displace the controlling authority, and applied the precedent directly to the canteen services at issue. Credit was therefore sustained and the Revenue's challenge failed.

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Issues: Whether cenvat credit of service tax paid on outdoor catering services used for the factory canteen is admissible.

Analysis: The Tribunal followed the binding Gujarat High Court decision holding that service tax paid on outdoor catering services provided in the factory canteen qualifies for cenvat credit. The contrary distinctions sought to be drawn by the Revenue were not accepted, as the cited precedent was found directly applicable to the facts of the case.

Conclusion: Cenvat credit on outdoor catering services used in the factory canteen is admissible, and the Revenue's appeal fails.

Final Conclusion: The impugned order allowing credit was sustained and the Revenue challenge was rejected.

Ratio Decidendi: Credit of service tax paid on outdoor catering services used in a factory canteen is available where binding precedent squarely supports such eligibility.

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