Tribunal Decision on Cenvat Credit for Canteen and Travel Services

The Tribunal allowed the appeal on the admissibility of Cenvat credit for both canteen services and travel agency services. The case was remanded for further verification on subsidized food for employees regarding canteen services. The decision emphasized the significance of statutory requirements and the connection between services provided and the manufacturing business to determine Cenvat credit admissibility.

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Issues:
Admissibility of Cenvat Credit on Canteen Services and Travel Agency Services.

Canteen Services (Catering Services):
The appellant filed an appeal against the denial of cenvat credit on canteen services and travel agency services. The appellant argued that previous judgments supported the admissibility of the credit. The Tribunal noted that the admissibility of cenvat credit on canteen services was correctly argued by the appellant, citing relevant case laws. The judgment in the case of Cadmach Machinery Company vs. CCE, Ahmedabad highlighted the importance of canteen services as a statutory requirement for manufacturing operations. However, the issue of subsidized food provided to employees needed verification as per the Bombay High Court judgment in CCE Nagpur vs. Ultratech Cement Limited. The case was remanded to the original adjudicating authority for further verification.

Travel Agency Services (Rent-a-Cab Service):
Regarding the admissibility of cenvat credit on travel agency services, the appellant argued that transportation from Vadodara to the factory was a necessity due to the factory's remote location. The Tribunal referenced a previous case to support the admissibility of service tax on such services. It was noted that providing transportation was essential for the smooth functioning of the manufacturing process. The appeal with respect to cenvat credit on travel agent services was allowed, overturning the Order-in-Appeal passed by the Commissioner (Appeals), Vadodara.

Conclusion:
The Tribunal allowed the appeal concerning the admissibility of cenvat credit on both canteen services and travel agency services. The case was remanded to the original adjudicating authority for further verification regarding the subsidized food provided to employees in the context of canteen services. The judgment highlighted the importance of statutory requirements and the nexus between services provided and the business of manufacture in determining the admissibility of cenvat credit.

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