Cenvat credit for statutorily mandated employee canteen service remains admissible where the catering is not for personal use.

Cenvat credit on outdoor catering service used for an employee canteen remained admissible after the 1 April 2011 amendment where the canteen was maintained under a statutory obligation and not for personal use. The Tribunal followed its earlier view that such catering service qualifies as input service when it is provided for employees in compliance with the Building and Other Construction Workers Act, 1996. On that basis, the denial of credit was unsustainable and the impugned order was set aside.

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Issues: Whether Cenvat credit of service tax paid on outdoor catering service used for employees' canteen facilities, provided in compliance with the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, was admissible after the amendment to the definition of input service with effect from 1 April 2011.

Analysis: The Tribunal noted that an earlier Division Bench had held that outdoor catering service continues to qualify for credit after the 1 April 2011 amendment where the service is not meant for personal use. On the facts, the appellant stated that the canteen service was provided to employees pursuant to statutory obligation under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and not for personal consumption. The Tribunal followed the earlier decision and accepted that the service was not for personal use.

Conclusion: Cenvat credit was admissible, and the denial of credit was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief according to law.

Ratio Decidendi: Outdoor catering service used for a statutorily mandated employee canteen is admissible as input service credit after the 1 April 2011 amendment if it is not for personal use.

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