https://www.taxtmi.com/caselaws?id=201911 Canteen services provided in factory premises, including outdoor catering used to operate the canteen, qualified as input service under Rule 2(l) of the CENVAT Credit Rules, 2004 because the canteen facility was a statutory requirement under the Factories Act and had an indirect nexus with manufacture and business. The court held that an input service need not be used in the actual production process if it is used directly or indirectly in relation to manufacture or business, and Rule 3 did not add any further restriction beyond the statutory definition. CENVAT credit on the service tax paid was therefore admissible, and the demand and penalty could not be sustained. en-us Thu, 01 Apr 2010 00:00:00 +0530 Fri, 29 Aug 2025 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=201911 Canteen services provided in factory premises, including outdoor catering used to operate the canteen, qualified as input service under Rule 2(l) of the CENVAT Credit Rules, 2004 because the canteen facility was a statutory requirement under the Factories Act and had an indirect nexus with manufacture and business. The court held that an input service need not be used in the actual production process if it is used directly or indirectly in relation to manufacture or business, and Rule 3 did not add any further restriction beyond the statutory definition. CENVAT credit on the service tax paid was therefore admissible, and the demand and penalty could not be sustained. Case-Laws Service Tax Thu, 01 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=201911