Cenvat credit on defective invoices and outdoor catering allowed subject to fresh verification and proof of free employee supply.

Cenvat credit disputes based on incomplete invoices require fresh factual verification where the assessee can produce supporting documents; the matter was remanded for the adjudicating authority to examine the invoices and decide afresh in accordance with law. Credit on outdoor catering services was treated as admissible subject to proof that the service was supplied free of cost to employees and that no recovery was made from them. The appeal was thus allowed in part, with limited verification directed on the invoice issue and conditional acceptance of the catering credit.

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Issues: (i) Whether the disallowance of Cenvat credit on the ground that some invoices did not contain the service provider's registration number required fresh verification; and (ii) whether Cenvat credit on outdoor catering services was admissible, subject to the assessee establishing that the service was provided free of cost to employees.

Issue (i): Whether the disallowance of Cenvat credit on the ground that some invoices did not contain the service provider's registration number required fresh verification.

Analysis: The credit was denied principally because the registration number was absent in some invoices, while the assessee stated that other invoices were available and that the matter had not been properly verified on merits. As both sides agreed that the invoices could be produced for scrutiny, the dispute required reconsideration by the adjudicating authority after examining the documentary evidence and granting a reasonable opportunity.

Conclusion: The issue was remanded for fresh verification, with directions to allow the assessee to produce the invoices and then decide the matter in accordance with law.

Issue (ii): Whether Cenvat credit on outdoor catering services was admissible, subject to the assessee establishing that the service was provided free of cost to employees.

Analysis: The credit on outdoor catering services was considered in the light of the statutory obligation to provide food to workers and the judicial approach that such credit may be available where the employer does not recover any amount from employees. The entitlement was thus treated as dependent on proof that the service was supplied without charge to employees.

Conclusion: Cenvat credit on outdoor catering services was held to be admissible, subject to verification that the service was provided free of cost without any recovery from employees.

Final Conclusion: The appeals were allowed in part by remanding the matter for limited verification, while recognising the admissibility of outdoor catering credit subject to proof of free supply to employees.

Ratio Decidendi: Cenvat credit disputes based on defective invoices require factual verification where relevant documents are available, and credit on welfare-related input services is admissible when the assessee establishes that no amount was recovered from employees.

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