https://www.taxtmi.com/caselaws?id=353031 CENVAT credit on outdoor catering service used for a statutory canteen was treated as an input service because the canteen was mandated under section 46 of the Factories Act, 1948. However, credit was not admissible to the extent the food cost and corresponding service tax burden were recovered from employees, since that portion was borne by the ultimate consumer rather than the manufacturer. Penalty was held unsustainable where the credit claim arose in a debatable area and the record did not establish mala fide intent or conduct justifying penal action. The result was partial relief, with the credit issue limited by employee recovery and the penalty deleted. en-us Fri, 10 Nov 2017 00:00:00 +0530 Wed, 27 Dec 2017 08:10:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353031 CENVAT credit on outdoor catering service used for a statutory canteen was treated as an input service because the canteen was mandated under section 46 of the Factories Act, 1948. However, credit was not admissible to the extent the food cost and corresponding service tax burden were recovered from employees, since that portion was borne by the ultimate consumer rather than the manufacturer. Penalty was held unsustainable where the credit claim arose in a debatable area and the record did not establish mala fide intent or conduct justifying penal action. The result was partial relief, with the credit issue limited by employee recovery and the penalty deleted. Case-Laws Central Excise Fri, 10 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353031