Tribunal allows appeals due to time-barred notice, grants CENVAT credit for specific services.

The Tribunal allowed both appeals based on the grounds of the limitation for the show cause notice dated 07.01.2010, which was found to be time-barred. Additionally, the Tribunal permitted CENVAT Credit on Outdoor Catering Service, Rent-a-Cab Service, and Club Services following legal precedents establishing the eligibility of these services for credit.

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Issues involved:
The issues involved in the judgment are the denial of CENVAT Credit of Service Tax paid on various services such as Outdoor Catering Service, Rent-a-Cab Service, Club or Association Service, and services availed to provide food coupons to employees.

Summary of Judgment:

Issue 1 - Limitation for Show Cause Notice dated 07.01.2010:
The first show cause notice dated 07.01.2010 was challenged on the grounds of limitation. The Tribunal found that the show cause notice was issued beyond the normal period of limitation without any justification for invoking the extended period. Consequently, all proceedings initiated through this show cause notice were dropped as time-barred.

Issue 2 - CENVAT Credit on Outdoor Catering Service and Rent-a-Cab Service:
Regarding the show cause notice dated 17.09.2010, the Tribunal referred to a ruling of the Hon'ble High Court of Karnataka which held that Service Tax paid on Rent-A-Cab Service and Outdoor Catering Service provided to employees for transportation and food provision fell under input services eligible for CENVAT Credit. Following this precedent, the Tribunal allowed CENVAT Credit on these services in the present appeal.

Issue 3 - CENVAT Credit on Club Services:
The Tribunal noted that the issue of CENVAT Credit on corporate membership of a club had been previously decided by the Tribunal in a case involving Vinayak Steels Limited. It was held that corporate club membership utilized for business purposes was eligible for CENVAT Credit before 01.04.2011. Relying on this precedent, the Tribunal allowed CENVAT Credit on Service Tax paid for corporate club membership to the appellant.

In conclusion, both appeals were allowed based on the findings related to the limitation of the show cause notice dated 07.01.2010 and the eligibility of CENVAT Credit on Outdoor Catering Service, Rent-a-Cab Service, and Club Services as per relevant legal precedents.

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