Tribunal allows Cenvat credit for outdoor catering services

The Tribunal allowed the appeal, holding that the appellant was entitled to avail Cenvat credit on outdoor catering services at the factory. The Tribunal emphasized the importance of High Court rulings over contrary Tribunal decisions, citing precedents supporting the eligibility of such services for credit. The demand was deemed unsustainable, and the appeal was allowed with consequential relief.

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Issues:
Entitlement to Cenvat credit on outdoor catering services availed at the factory.

Analysis:
The appeal was filed against the order denying Cenvat Credit on outdoor catering services availed by the assessee in their factory. The appellant argued that catering services were essential for ensuring adequate working conditions for all workers in the factory, not for personal consumption. The amended definition of 'input service' was cited to support the claim, along with various judgments where credit was allowed in similar cases. The Revenue, however, referred to a Larger Bench decision holding that Cenvat credit on outdoor catering is not available post the amended definition. The Tribunal noted that the facility was for all employees, not a specific group, and cited precedents supporting the admissibility of credit in such cases.

The Tribunal observed that the High Court had upheld the entitlement of Cenvat credit on outdoor catering, which was not considered by the Larger Bench in the Wipro case. It was emphasized that the decision of the High Court would have a binding precedence over the Tribunal's decision. Citing a similar precedent, the Tribunal highlighted the importance of following High Court rulings over contrary Tribunal decisions. Additionally, the Madras High Court and Gujarat High Court decisions were referenced to support the eligibility of outdoor catering services for credit due to their integral connection with the manufacture of final products.

In conclusion, considering the legal positions discussed and the precedents cited, the Tribunal held that the appellant was entitled to avail Cenvat credit on outdoor catering services. The demand was deemed unsustainable, and the appeal was allowed with consequential relief.

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