Tribunal grants CENVAT credit on catering & travel services. Precedent upheld.

The Tribunal allowed the appeals, finding the denial of CENVAT credit on outdoor catering and travel agency service unsustainable in law. Relying on precedent and the definition of 'input service' under the CENVAT Credit Rules, 2004, the Tribunal provided consequential relief to the appellant, in line with a previous favorable Tribunal decision and High Court dismissal of the Department's appeal. The judgment was pronounced on 10/11/2016.

---

---

Issues:
- Appeal against denial of CENVAT credit on outdoor catering and travel agency service.
- Interpretation of 'input service' under CENVAT Credit Rules, 2004.

Analysis:
The appellant, engaged in the production and clearance of excisable goods, availed CENVAT credit on service tax charged on outdoor catering and travel agency service. A show-cause notice proposing to deny the CENVAT credit was issued, leading to confirmation of demand, penalty, and interest by the original authority. The appellant's appeal before the Commissioner(A) was rejected, prompting the present appeal. The main contention was the denial of CENVAT credit on outdoor catering and rent-a-cab service.

The counsel for the appellant argued that the denial of CENVAT credit was incorrect and unsustainable, citing judicial precedents. Referring to a previous Tribunal judgment in the appellant's favor, it was argued that both services fell within the definition of 'input service' as per Rule 2(l) of the CENVAT Credit Rules, 2004. The Department's appeal against the Tribunal's decision was dismissed by the High Court, further supporting the appellant's position.

In line with the precedent set in the appellant's earlier case, the Tribunal found the impugned order unsustainable in law. Relying on the previous decision, the Tribunal allowed both appeals, providing consequential relief to the appellant. The judgment was pronounced in Open Court on 10/11/2016.

---