Appellant entitled to CENVAT credit for various services post 02/04/2011

The Member (Judicial) found the Revenue authorities' denial of CENVAT credit for service tax paid on outdoor canteen service, bus and car hire service, and garden service unsustainable. Relying on precedents, including the Reliance Industries case, it was held that the appellant was entitled to CENVAT credit for the services in question, even post 02/04/2011. The impugned orders were set aside, and the appeals were allowed.

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Issues:
- Availment of CENVAT credit on service tax paid for outdoor canteen service, bus and car hire service, and garden service.
- Interpretation of the definition of 'input service' under Rule 2(l) of CENVAT Credit Rules.
- Application of previous Tribunal and High Court decisions on similar issues.
- Sustainability of the orders passed by the Revenue authorities.

Analysis:
1. Availment of CENVAT Credit: The issue revolved around the appellant's denial of CENVAT credit for service tax paid on outdoor canteen service, bus and car hire service, and garden service. The Revenue authorities raised a demand, contending that these services were not used in the manufacturing activity. The first appellate authority allowed CENVAT credit for services utilized before 02/04/2011 but denied it for the period post this date due to a change in the definition of 'input service' under Rule 2(l) of CENVAT Credit Rules.

2. Interpretation of 'Input Service' Definition: The appellant cited the Division Bench's decision in Reliance Industries Ltd. v. Commissioner of Service Tax, which allowed CENVAT credit for similar services even post 02/04/2011. The Tribunal also followed this decision in the case of Hindustan Coca Cola Beverages Pvt. Ltd. The appellant argued that the services in question were eligible for CENVAT credit based on these precedents.

3. Application of Previous Decisions: The appellant further referenced the case of Commissioner of Central Excise, Bangalore - II v. Millipore India Pvt. Ltd., where the Hon'ble High Court of Karnataka allowed CENVAT credit for service tax paid on garden maintenance service. The Tribunal had also upheld this decision in the case of Life Long Meditech Ltd v. Commissioner of Central Excise & Service Tax. These precedents supported the appellant's argument for availing CENVAT credit on garden maintenance service.

4. Sustainability of Orders: After considering the submissions from both sides, the Member (Judicial) found the impugned orders unsustainable for multiple reasons. Referring to the Tribunal's detailed judgment in the Reliance Industries case, it was noted that the issue of availing CENVAT credit post 02/04/2011 on similar input services had been addressed. The Member held that the appellant was entitled to CENVAT credit on canteen services, bus and car hire services for the period in question, as supported by the Tribunal's decision in the Hindustan Coca Cola Beverages case. Consequently, the impugned orders were set aside, and the appeals were allowed.

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