Tribunal allows CENVAT credit for catering, pre-amendment rules apply.

The Tribunal allowed CENVAT credit on outdoor catering services for the periods January 2010 to August 2010 and September 2010 to March 2011, citing the definition of 'input service' pre-amendment. However, credit for the period from 1.4.2011 to 30.4.2011 was deemed ineligible following a Supreme Court decision. The appeal was partly allowed, permitting credit for eligible periods and disallowing it for the specified post-amendment period. Consequential relief was granted accordingly.

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Issues:
1. Eligibility of CENVAT credit on outdoor catering services for the period January 2010 to April 2011.

Analysis:
The appellants, engaged in the manufacture of women's inner garments, availed CENVAT credit on taxes paid for various input services, including outdoor catering services. The Central Excise Department issued Show Cause Notices proposing to disallow the credit availed on outdoor catering services for the period January 2010 to August 2010 and September 2010 to April 2011. The original authority confirmed the demand, interest, and penalties. On appeal, the Commissioner (Appeals) set aside the penalties but confirmed the demands, leading to the appellant approaching the Tribunal.

The learned counsel for the appellant argued that the major period falls before 1.4.2011, pre-amendment to the definition of 'input service.' He cited the Supreme Court's decision in Toyota Kirloskar Motor Pvt. Ltd. Vs. Commissioner of Central Tax to support the contention that post 1.4.2011, the appellant is not eligible for credit. Referring to precedents like M/s. Sharda Motor Industries Ltd. and Chennai Container Terminal Pvt. Ltd., the counsel contended that credit on outdoor catering services before 1.4.2011 is legitimate.

The Tribunal noted that only the period from 1.4.2011 to 30.4.2011 falls after the amendment to the definition of input services. Following the Supreme Court's decision, credit for this period was deemed ineligible. However, for the remaining periods (January 2010 to August 2010 and September 2010 to March 2011), the Tribunal held that credit on outdoor catering services is permissible as per the definition of input service pre-amendment. Relying on the precedents cited, the Tribunal modified the impugned order, allowing credit for the eligible periods and disallowing it for the specified post-amendment period. The appeal was partly allowed accordingly, with consequential relief granted if applicable.

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