2010 (12) TMI 378

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....as computer monitor, air conditioner, refrigerator and colour television sets, falling under the Chapter Heading Nos. 84 and 85 of the first schedule to the Central Excise and Tariff Act, 1985. The appellants have utilised cafeteria/catering services by entering into contract with Outdoor Catering Services for the purpose of providing food and beverages to their workers. The appellants took credit on service tax amounting to Rs. 6,97,948/- on the catering services utilised by them relating to the period from 18-11-05 to June, 2006. A show cause notice dated 1-12-06 was issued alleging that the said services cannot be treated as an input services and consequently proposing denial of credit and demand of equal amount as duty along with intere....

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....ribunal in the case of Vandana Global Ltd. v. CCE, Raipur reported as [2010 (253) E.L.T. 440 (Tri-LB)], he contends that no credit can be allowed in respect of 'inputs' or 'input services' unless the same is integrally connected to the manufacture of finished excisable goods. Relying on the decision of Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. v. CCE, Delhi-III reported in [2009 (240) E.L.T. 641 (S.C.)], he submits that mere inclusion of value in assessable value of the final product is not enough and there should be nexus between the inputs on the one hand and the finished goods on the other. He also relies on the decision of the Tribunal in the case of Commissioner of Central Excise, Chennai v. Sundaram Brake Linings reporte....

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.... accessories of the final products cleared along with the final product, or -        goods used as paint, or as -        packing material (including the raw material used for making the packing material within the factory of production), or as -        fuel, or -        for generation of electricity or steam used for manufacture of final products or for any other purpose within the factory of production, and -        lubricating oils, greases, cutting oils and coolants. "input services means any service - (i)      used by t....

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..... 9. In the light of the above inclusive definition, it requires to be considered as to whether the outdoor catering services utilised by the appellants can be treated as input services or not. When the factories Act stipulates that any Company employing more than 250 workers have to maintain the canteen facility and also provides punishment for violation of the stipulation, providing of such services has to be treated as integrally connected to the manufacture of the finished excisable goods by the appellants. 10. The decision of the Supreme Court in the case of Maruti Suzuki Ltd. cited supra relating to inputs has laid down that mere inclusion of value of certain items in the assessable value cannot be treated as sufficien....