2017 (5) TMI 139 - AT - Central Excise

Appellant granted CENVAT credit for catering, denied for guest house maintenance. Input services broadened.

M/s. IFB Industries Ltd Versus Commissioner of Central Excise, Customs and Service Tax

M/s. IFB Industries Ltd Versus Commissioner of Central Excise, Customs and Service Tax - 2017 (4) G.S.T.L. 366 (Tri. - Bang.) Issues:1. Whether the appellant is entitled to claim CENVAT credit on catering service and guest house maintenance service.Analysis:The appellant, a manufacturer of excisable goods, filed appeals against the Commissioner's order upholding the denial of CENVAT credit on services like guest house maintenance and canteen services. The department contended that these services did not qualify as input services under the CENVAT Credit Rules. The appellant argued that all services related to their business activities should be considered input services, citing court decisions supporting a broad interpretation of the definition. The appellant also submitted evidence that the services in question were linked to their manufacturing and business activities. The department defended the denial of credit, stating that guest house maintenance and providing food to employees were not directly connected to the business. Both parties relied on various court decisions to support their arguments.The Tribunal considered the submissions and held that outdoor catering services were indeed input services based on precedents set by the High Court of Karnataka. Therefore, the appellant was entitled to claim CENVAT credit for outdoor catering services. However, the maintenance of the guest house was deemed not falling within the definition of input services, leading to the dismissal of the appellant's appeal regarding the guest house maintenance service. Consequently, the appeal related to outdoor catering was allowed, while the appeal concerning guest house maintenance was dismissed. The judgment was delivered on March 23, 2017, by the Tribunal in Bangalore.