Tribunal allows Cenvat Credit on input services used at job workers' premises

The Tribunal allowed the appeal in favor of the Appellant, ruling that they were eligible to avail Cenvat Credit on input services used at job workers' premises. The Tribunal set aside the recovery of credit and penalty on such services, except for outdoor catering services, for which the recovery was upheld without imposing a penalty. The Appellant accepted the denial of credit for outdoor catering services and reversed the amount, which was acknowledged by the Tribunal.

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Issues:
1. Admissibility of Cenvat Credit on input services used at job workers' premises.
2. Denial of credit for outdoor catering services.

Analysis:

Issue 1: Admissibility of Cenvat Credit on input services used at job workers' premises:
The appeal was filed against an Order-in-Original passed by the Commissioner of Central Excise, Mumbai II, regarding the admissibility of Cenvat Credit on Service Tax paid on input services used at job workers' premises. The Appellant, engaged in manufacturing Heavy Engineering Equipments, availed Cenvat Credit on services rendered at job workers' premises. The Revenue alleged inadmissibility of the credit as the services were used outside the factory premises. The Appellant argued that the issue was settled and cited previous Tribunal judgments, including Larsen & Toubro Ltd cases and others like Tata Motors Limited and MRK Ltd. The Appellant accepted the denial of credit for outdoor catering services and reversed the amount. The Tribunal considered the submissions and previous judgments, concluding that the Appellant was eligible to avail Cenvat Credit on input services used at job workers' premises. The Tribunal set aside the recovery of credit and penalty on such services, upholding only the recovery related to outdoor catering services without imposing a penalty.

Issue 2: Denial of credit for outdoor catering services:
The Appellant did not contest the denial of credit for outdoor catering services and accepted the reversal of the amount. The Tribunal acknowledged this acceptance and upheld the recovery of the credit amount related to outdoor catering services. However, the Tribunal clarified that no penalty would be imposed for taking the said credit. The appeal was partly allowed, with the Tribunal ruling in favor of the Appellant regarding the admissibility of Cenvat Credit on input services used at job workers' premises while upholding the recovery of credit for outdoor catering services without imposing a penalty.

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