2010 (11) TMI 224

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....ri Manish Mohan, SDR, for the Respondent. [Order]. - Heard both sides. 2. The appellant filed this appeal against the order-in-appeal No. P-1/VSK/247/09, dated 24-11-2009 whereby the Commissioner (Appeals) has denied them the Cenvat credit on outdoor catering services on the ground that the appellants have not demonstrated that the outdoor catering expenses formed part of the assessa....

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.... The contention of the appellant is that outdoor catering services is a mandatory service provided in terms of the Section 46 of the Factory Act, 1948. They contended that outdoor catering services have nexus with the manufacturing of the final product. In support of their contention they have placed reliance on Hon'ble Bombay High Court's decision in the case of CCE, Nagpur v. Ultratech Ceme....

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.... Bombay High Court is sub-silentio to the expressed provisions of the Act. 5.1 I have perused the records and considered the submissions. The appellants are providing canteen facilities to their workers, which is being done through a outdoor caterer engaged by them. The canteen facilities are mandatorily required to be provided under the provisions of factory Act, 1948. This question was b....

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.... cement. Hence, in our opinion, the Tribunal was justified in following the Larger Bench decision of the Tribunal in the case of GTC Industries Ltd., (supra) and holding that the assessee is entitled to the credit of service tax paid on outdoor catering service". From the above, it follows that the issue stands settled in favour of the assessee. As regards the contention that the Hon'ble Bombay....