CENVAT credit for outdoor catering used in a statutory employee canteen was held admissible under existing precedents.

CENVAT credit on outdoor catering services used to provide a statutory canteen facility to employees was treated as admissible where the service had nexus with the manufacture of petroleum products and the canteen formed part of employee service conditions under the Factories Act. The issue was resolved by applying existing judicial precedents that recognised such employee welfare expenditure as input service for credit purposes. On that basis, the credit was upheld and the Revenue's challenge failed.

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Issues: Whether CENVAT credit availed on outdoor catering service used for providing canteen facility to employees is admissible as input service.

Analysis: The dispute turned on whether the catering service had the requisite nexus with the manufacture of petroleum products and whether the canteen facility, being a statutory obligation under the Factories Act, formed part of the service conditions for employees. The impugned issue had already been settled by cited judicial precedents holding such employee welfare facility to be eligible for CENVAT credit.

Conclusion: The credit was held admissible and the Revenue's challenge failed.

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