2011 (11) TMI 261

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....ties on inputs, capital goods and service tax credit on input services as per the CENVAT Credit Rules, 2004. During the course of scrutiny of the records, it was noticed by the department that the assessee had availed CENVAT credit of service tax in respect of outdoor catering services. Two show cause notices dated 9.4.2008 and 27.10.2008 were issued to the assessee for the period October 2007 to 13th January 2008 and 14th January 2008 to 31st August 2008 demanding service tax under the provisions of Rule 14 of the CENVAT Credit Rules read with Section 11A of the Central Excise Act.These show cause notices were adjudicated by the Assistant Commissioner vide orders-in-original dated 24.3.2009 and 25.3.2009. In these orders, the adjudicating ....

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....the Hon'ble Bombay High Court regarding the admissibility of the CENVAT credit.  She submits that since the issue was already decided by the Tribunal in the case of GTC Industries Ltd. in their favour and the Hon'ble High Court has taken a different stand, the whole issue relates to the dispute of interpretation of the statute and, therefore, no penalty is imposable on the respondent for availing the credit. She, therefore, requests that no penalty is required to be imposed on the respondent. 5. After hearing both sides, I find that the sole question involved in the appeals is whether CENVAT credit of the service tax paid on outdoor catering services is admissible to the respondent when the cost of catering is being recovered by the....