2010 (12) TMI 979

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....gned order wherein duty demand, interest and penalty have been set aside by the lower appellate authority.   2. Facts of the case are that the respondent is the manufacturer of Scooters who have availed CENVAT credit on Liquefied Petroleum Gas (LPG). The LPG was also used by them in their canteen for providing meal to the workers and staff members. An inspection was done at the premises of....

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....the same has been included as part of cost of their final product and as per Factory Act, the respondent has to supply subsidized food to their workers through Canteen. Aggrieved by the said order, the revenue is in appeal.   3. The learned DR argued that this issue has been settled by the Hon'ble Apex Court in the case of Maruti Suzuki Ltd. v. CCE 2009 (240) ELT 641/22 STT 54 wherein it w....

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....factory as per Factories Act and to provide canteen facilities to their workers to run their factory which is a statutory requirement. In the case of M.M.R. Khan (supra) the Hon'ble Apex Court has observed that there is no difficulty in holding that the canteens are incidental to or connected with the manufacturing process or the subject of the manufacturing process. The provision of the canteen i....