Tribunal upholds CENVAT credit for specific services, dismisses appeal challenging credit allowance, sets limitations on outdoor catering credit.

The Tribunal upheld the CENVAT credit for outdoor catering, rent-a-cab, maintenance and repair services, supply of journals and periodicals, emphasizing their nexus to manufacturing activity. The appeal challenging the allowance of credit was dismissed, with limitations set on outdoor catering service credit as per precedent. The Tribunal directed the reversal of impermissible credits, ultimately finding the Revenue's appeal meritless and disposing of it accordingly.

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Issues: Appeal against allowing CENVAT credit on various input services without discussing nexus to manufacturing activity.

Analysis:
1. Outdoor Catering Service: The appeal challenges the allowance of CENVAT credit for this service. The judgment cites the High Court decision in Commissioner of Central Excise v. Ultratech Cement Ltd., where it was held that such services are 'input services' eligible for credit, except for the portion recovered from workers. The Tribunal upholds the credit for this service.

2. Rent-a-Cab Service: The Tribunal refers to the High Court ruling in Commissioner of Central Excise v. Stanzen Toyotetsu India, stating that service tax on Rent-a-Cab Service can be claimed as CENVAT credit when used for employee transportation. The credit for this service is upheld.

3. Maintenance and Repair Service: The Tribunal addresses the objection raised by Revenue regarding the Annual Maintenance Contract for a Xerox machine. It rules that the objection is not valid as the contract covers repair, maintenance, replacement of parts, and supply of consumables, making it eligible for CENVAT credit. The credit for this service is upheld.

4. Supply of Journals and Periodicals: The Tribunal dismisses Revenue's objection to service tax credit on research journals, stating that research is integral to drug manufacturing. It deems the payment for online information services as an 'input service' under CENVAT Credit Rules, allowing the credit for this service.

5. Nexus to Manufacturing Activity: The Tribunal notes that while the adjudicating authority questioned the nexus between input services and manufacturing activity, the lower appellate authority found a connection. Citing past Tribunal decisions, the judgment supports the lower authority's stance, emphasizing the established nexus between the services and manufacturing activity.

6. Overall Decision: The Tribunal finds the Revenue's appeal lacking merit and dismisses it. It limits the credit for outdoor catering service as per the Ultratech Cement Ltd. case and directs reversal of impermissible credits. The appeal is disposed of accordingly.

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