Appeal allowed in input service credit case involving Outdoor Catering, Rent-a-cab, and Travel Agent services.

The Revenue appealed against the denial of input service credit to the respondent by the Commissioner (Appeals) in a case involving Outdoor Catering Service, Rent-a-cab service, and Travel Agent Service. The Member found merit in the Revenue's argument regarding the denial of Cenvat Credit on Outdoor Catering Service, modifying the order to declare the credit inadmissible for service tax borne by the worker. As a result, the appeal was disposed of in favor of the Revenue.

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Issues: Denial of input service credit on Outdoor Catering Service, Rent-a-cab service, and Travel Agent Service.

In this case, the Revenue filed an appeal against the Order of the Commissioner (Appeals) regarding the denial of input service credit to the respondent. The respondent was engaged in manufacturing excisable goods and availing Cenvat Credit under the Cenvat Credit Rules, 2004. The adjudicating authority dropped the proceedings initiated through show cause notices, but the Revenue appealed to the Commissioner (Appeals) who rejected the appeal. The issue revolved around the denial of input service credit on Outdoor Catering Service, Rent-a-cab service, and Travel Agent Service. Both lower authorities had allowed the credit based on Tribunal decisions. The Revenue contended that the decision of the Tribunal in a specific case did not seem correct. The Member found merit in the Revenue's argument concerning the denial of Cenvat Credit on Outdoor Catering Service, citing a relevant case law. Consequently, the impugned order was modified to declare that the Cenvat Credit on Outdoor Catering Service was not admissible to the respondent for the service tax borne by the worker. The appeal by the Revenue was disposed of accordingly.

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