CENVAT credit on factory canteen catering service justified interim stay where mandatory canteen requirements supported the claim.

CENVAT credit on outdoor catering service used for a factory canteen was challenged on the ground of denial of credit, but the appellant argued that the canteen was mandatory under Section 46 of the Factories Act and that the service was used to supply food to workers during the relevant period. The material facts had already been placed before the adjudicating authority and were reflected in the impugned order. On the prima facie view that the statutory canteen requirement and cited case law supported the claim, interim protection was considered justified, and waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the demand arising from denial of CENVAT credit on outdoor catering service used for the factory canteen.

Analysis: The appellant had pleaded that the canteen facility was mandatory under Section 46 of the Factories Act and that the service was used for providing food to workers during the material period. The material facts had been placed before the adjudicating authority and were reflected in the impugned order. The mandatory nature of the canteen requirement and the prima facie support from the cited case law were sufficient to justify interim protection at this stage.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellant.

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