Service Tax on Canteen Services and Staff Transportation.

[Santosh Mali]

Dear All,

We are manufacturer of Plastic Molded Parts of Motor Vehicle. Chapter heading 87089900. Our total employee including contractual are >250. Hence canteen facility to the workers is the statutory requirement under Section 46, of the Factories Act, 1956.

Hence we are availing the service tax for canteen services provided. Caterer is third party who is preparing foods at his location and serves in our premises. Also no deduction or charges applied to the employee by salary or other way.We relay on :

1.2013 (8) TMI 97 - CESTAT NEW DELHI2013 (8) TMI 97 - CESTAT NEW DELHI;

2.2016 (5) TMI 1077 - CESTAT BANGALORE

Cera Audit party objected the service tax availed against such canteen services. As per audit party Rule is amended and now Outdoor catering is now excluded in definition.

Please guide.....

Santosh S Mali.

9922402583.

AI Summary

Cenvat credit on canteen services and staff transport questioned after amendment; admissibility depends on nexus and period.
Whether Cenvat credit is admissible on canteen services provided by an external caterer who prepares food offsite and serves employees, and on staff transportation, given cited pre amendment case law allowing such credits but audit objections based on an amendment excluding outdoor catering; admissibility turns on nexus to manufacturing activity and the specific period for which credit was claimed under the statutory definition in force.