2019 (2) TMI 73 - AT - Central Excise

Appeal allowed: CENVAT Credit denial on Catering Service unjustified.

The appeal was successful as the Member (Judicial) found the denial of CENVAT Credit on Outdoor Catering Service unjustified based on the judgment of the ... CENVAT Credit - input services - Outdoor Catering Service - Held that:- Hon’ble Madras High Court in the case of Bharath Heavy Electricals Ltd. [2016 (3) TMI 441 - MADRAS HIGH COURT] after considering the decision of other fora including that of the Hon’ble Apex Court, has held Outdoor Catering Service to be an eligible input service prior to the exclusion w.e.f. 01.04.2011. The denial of CENVAT Credit on Outdoor Catering Service is unjustified - appeal allowed - decided in favor of appellant. Issues:Denial of CENVAT Credit on Outdoor Catering Services.Analysis:The appellant, engaged in the manufacture of Bulk Drugs, availed CENVAT Credit on various input services. Show Cause Notices were issued alleging irregular availment of CENVAT Credit. The lower adjudicating authority allowed credit on most input services but disallowed credit on Outdoor Catering Service. An appeal was filed, challenging the denial of credit on Outdoor Catering Services.During the hearing, the appellant's advocate argued that the denial of CENVAT Credit on Outdoor Catering Services had been previously addressed by the Hon'ble jurisdictional High Court and a CESTAT decision. The advocate cited relevant cases to support the appellant's position.The Advocate for the Revenue supported the findings of the lower authorities. After hearing both sides and reviewing the arguments and case laws presented, the Member (Judicial) referred to the judgment of the Hon'ble Madras High Court in a related case. The High Court had held that Outdoor Catering Service was an eligible input service before the exclusion effective from 01.04.2011.Based on the High Court's judgment and the applicable law, the Member (Judicial) found the denial of CENVAT Credit on Outdoor Catering Service unjustified. Consequently, the impugned Order was set aside, and the appeal was allowed with any consequential benefits as per law. The operative part of the order was pronounced in open Court.