TaxTMI 
TaxTMI 
2011 (8) TMI 560
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.... or in relation to the manufacture of their final products. The dispute in this case is as to whether during the period from October, 2005 to July, 2008, the respondents were eligible for Cenvat credit of service tax paid on outdoor catering services availed by them for providing canteen facilities to their workers. The Joint Commissioner vide Order-in Original dated 19.03.2009 denied the Cenvat credit in respect of outdoor catering services and confirmed the Cenvat credit demand of Rs. 92,345/- along with interest and also imposed penalty of equal amount on the respondent on this count. On appeal being filed to the Commissioner (Appeals), the Commissioner (Appeals) by the impugned order dated 18.09.2009 set aside the Joint Commissioner's o....
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....ether directly or indirectly in or in relation to the manufacture of final product; that in this case such a case has not been proved, that the Single Member Bench of this Tribunal in the case of CCE v. Sundaram Brake Linings [2010] 28 STT 435 (Chennai - CESTAT) has held that the outdoor catering services availed by a manufacturer for providing catering services to its workers has no nexus with the manufacture of the final products even if the expenses incurred on providing catering services are taken into under CAS-4, that just because the cost of services availed is required to be taken into consideration under CAS-4, it does not mean that it has to be treated as input services, that in this regard the judgment of Larger Bench of the Trib....
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....3.2011 in the case of J.K. Industries Ltd. wherein the Tribunal has held that outdoor catering service availed by the respondent for providing catering services to their workers is covered by the definition of 'input service', that in the case of respondent, the respondent under the labour law are required to provide catering facilities to their workers and hence, the service, in question, received by them is an activity related to the manufacturing business and would be covered by the definition of input service, that since the providing of catering facilities is a requirement of law, the same cannot be termed as welfare activity and that there is no infirmity in the impugned order. 5. I have carefully considered the submissions from both....
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....are directly required in or in relation to the manufacture while there may be some other services which though not directly required for manufacture may be required for compliance with certain Central, State Government, or local Laws and since without availing such services, manufacturing activity would not be allowed, such services would be covered by the main definition's part. Moreover, the inclusive part of the definition also covers the "activities relating to business" and this has been interpreted by the Hon'ble Bombay High Court in the case of Ultratech Cement Ltd. (supra) as the activities which have nexus with the manufacturing business of the assessee. Services required to be used for compliance with certain Central or State Govt....
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....s whether the service is necessary for compliance with the Central/State Govt. or local laws. 7. In this case, the original adjudicating authority as well as Commissioner (Appeals) have not discussed as to whether providing of food/catering services to the workers was the requirement of the Factory Act or any other Labour Laws of the Central Government or State Government, which were applicable to them. If under the Factory Act or any other Labour Laws, the respondent are required to provide catering services to their workers, the same would have to be treated as input services and would be eligible for Cenvat credit while if they are not required to provide under the Factory Act or any other Labour Laws, catering facilities to their worke....