cenvat on hotel, fooding bill

[sarat sahoo]

Sir,

One commercial educational institute avail cenvat credit on hotel bill,fooding bill provided to their teachers for teaching as they are calling for guest faculity and also avails cenvat credit on fooding,hotel bill as they relate to business activity . Is it as per rule or not pl mention the rule or notification no

[KASTURI SETHI]

See Serial no.4 of Notification No.26/12-ST. Food items falling under Chapters No.1 to 22 of Central Excise Tariff Act are excluded for the purpose of Cenvat Credit.

AI Summary

Cenvat credit on food and hotel fooding is excluded, barring input credit for such supplies to institutions. A commercial educational institute's claim for Cenvat credit on hotel and fooding bills for guest faculty is affected by an exclusion: Serial no.4 of Notification No.26/12-ST disallows Cenvat credit on food items falling under Chapters 1-22 of the Central Excise Tariff, thereby precluding input credit for such food supplies.