Appellate Tribunal upholds Cenvat Credit eligibility for Catering & Maintenance Services

The appeal before the Appellate Tribunal CESTAT CHANDIGARH challenged the eligibility of the respondents for Cenvat Credit on Catering Services and Office/Garden maintenance services. The Tribunal upheld the decision of the Ld. Commissioner (Appeals) in favor of the respondents based on legal precedents and statutory requirements. The Revenue's contention was dismissed, and the eligibility of Cenvat Credit for both services was affirmed, concluding that the appeal lacked merit.

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Issues:
1. Eligibility of Cenvat Credit on Catering Services
2. Eligibility of Cenvat Credit on Office/Garden Maintenance Services

Analysis:

Issue 1: Eligibility of Cenvat Credit on Catering Services
The appeal was against the order of the Ld. Commissioner (Appeals-II), Delhi, Gurgaon, regarding the availing of Cenvat Credit on Catering Service by the respondents, who are manufacturers of auto parts. The Ld. Commissioner (Appeals) allowed the benefit of Cenvat Credit based on judgments of the Hon’ble Bombay High Court and a Tribunal case. The Revenue contended that there was no nexus between the manufacturing activity and Catering Services. However, the Ld. Advocate for the respondents cited a Tribunal judgment supporting their claim. The Member (Technical) found that the issue was settled by previous judgments, including the Hon’ble Bombay High Court decision, and upheld the Ld. Commissioner (Appeals)'s order on the admissibility of credit for Catering Services.

Issue 2: Eligibility of Cenvat Credit on Office/Garden Maintenance Services
Regarding the eligibility of Cenvat Credit on Office/Garden maintenance services, the respondents argued that maintaining the garden in the factory was a statutory requirement under State Pollution Control Regulations. They clarified that the entire expense pertained to Garden maintenance services, which was not disputed by the Revenue. The Member (Technical) noted that the maintenance of the garden was indeed a statutory requirement and referred to a Tribunal case that supported the eligibility of input services credit for Garden and Office maintenance. Consequently, the Member (Technical) found no issue with the Ld. Commissioner (Appeals)'s decision on this matter. Ultimately, the appeal filed by the Revenue was dismissed as there was no merit in challenging the eligibility of Cenvat Credit for both Catering Services and Office/Garden maintenance services.

In conclusion, the judgment by the Appellate Tribunal CESTAT CHANDIGARH upheld the eligibility of the respondents for Cenvat Credit on Catering Services and Office/Garden maintenance services, as supported by relevant legal precedents and statutory requirements.

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