Cenvat credit on welfare and maintenance services upheld where courts recognised them as eligible input services.

Cenvat credit was treated as admissible on outdoor catering services and garden maintenance services under Rule 2(l) of the Cenvat Credit Rules, 2004 because High Court decisions had already recognised both as eligible input services. The Tribunal followed the settled judicial position and held that credit could not be denied merely because the services related to worker welfare or business maintenance. On that basis, the disallowance was set aside in favour of the assessee.

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Issues: Whether Cenvat credit was admissible on outdoor catering services and garden maintenance services under Rule 2(l) of the Cenvat Credit Rules, 2004.

Analysis: The issue was treated as covered by the decisions of the High Courts, which had recognised outdoor catering services provided to workers as input services and had also held garden maintenance services to be eligible for Cenvat credit. In view of the settled position, the Tribunal found no reason to deny credit on either of the services in dispute.

Conclusion: Cenvat credit was admissible on both outdoor catering services and garden maintenance services, and the disallowance was set aside in favour of the appellant.

Ratio Decidendi: Where the relevant service has been judicially recognised as an eligible input service, Cenvat credit cannot be denied merely because it relates to welfare or maintenance activities connected with the assessee's business.

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