Business-linked input services justify CENVAT credit where outdoor catering and related services have a nexus with operations.

CENVAT credit on outdoor catering, rent-a-cab, hotel booking and car maintenance services was admissible as input service under Rule 2(l) of the CENVAT Credit Rules, 2004 because the services had a sufficient nexus with business activity. The reasoning followed settled precedent, including prior orders in the assessee's own case, treating such business-linked services as within the input service definition. On that basis, denial of credit was unsustainable and the credit was allowed in favour of the assessee, with the impugned order set aside and consequential relief granted.

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Issues: Whether CENVAT credit of service tax paid on outdoor catering, rent-a-cab, hotel booking and car maintenance services was admissible as input service under Rule 2(l) of the CENVAT Credit Rules, 2004.

Analysis: The disputed services were held to be covered by the settled line of decisions treating such services as having a nexus with business activity and, therefore, falling within the scope of input service. The decision also relied on prior orders in the assessee's own case and other precedents allowing credit on similar services.

Conclusion: The denial of CENVAT credit was unsustainable, and the credit was held admissible in favour of the assessee.

Final Conclusion: All three appeals were allowed and the impugned order was set aside with consequential relief.

Ratio Decidendi: Services having a sufficient nexus with business operations fall within the ambit of input service for CENVAT credit eligibility under Rule 2(l) of the CENVAT Credit Rules, 2004.

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