TaxTMI 
TaxTMI 
2016 (5) TMI 1077
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....arue Printing Cylinders" falling under chapter heading 84425010 of schedule to Central Excise Tariff Act 1985 and are availing cenvat credit on inputs, input services, capital goods and paying the prescribed duty on the final product. During the course of EA 2000 audit of the central excise records in the month of March 2008, the officers of the central excise objected to the availment of cenvat credit on input services such as (i) credit on staff bus for carrying the staff (ii) catering services, CHA service and servicing of motor cars. The appellant clarified the audit objections vide their letter dated 30.03.2008 in spite of that appellant received a show-cause notice proposing to deny the cenvat credit on 2 services i.e Catering Service....
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.... c) CCE Vs. Federal Mogul Goetze (I) Ltd. - 2011 (TIOL 650 (HC-P&H) d) CCE Vs. Ultratech Cements Ltd. - 2010 (20) S.T.R. 577 (Bom.) Whereas with regard to cenvat credit on Staff Transport service he relied upon the following judgments: a) CCE Vs. Stanzen Toyotetsu I P Ltd. - 2011 (23) STR 444 (HC-Kar) b) CCE Vs. Ferromatik Milacraon I Ltd. - 2011 (21) S.T.R. 8 (Guj.) c) CCE Vs. Federal Mogul Goetze (I) Ltd. - 2011 TIOL 650 (HC-P&H) d) CCE Vs. TATA Auto Comp Systems Ltd. - 2012 (27) STR 338 (Kar.) 2.1. He also submitted that the respondent has failed to follow the binding judgments of the jurisdictional High Court as well as other Tribunals on the very same issue of credit on Catering ....
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....p, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal 3.1. The assessee has availed the credit on these services considering the same as input services whereas as per the department Outdoor Catering Services as well as the Staff Transport Services w....
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....e as far as the employees are concerned. He has paid the service tax on outdoor canteen services. The said expenses incurred by the assessee will also be taken into consideration before fixing the price of the final product. It may be a welfare measure but certainly it is not a charity provided by the employer to the employees. It is an onerous legal obligation imposed on him. The cost incurred in rendering such service will be included in the cost of production. 14. Again the Karnataka High Court in the case of Resil Chemicals Pvt. Ltd. Vs. CCE, Bangalore - I reported in 2014 (36) STR 1260 (Kar.) and in the case of CCE, Bangalore Vs. Ace Designers reported in 2011-TIL-931-HC-Kar-CX followed the decision in the case of CCE Vs. Stan....
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....d in 2014-TIOL-2001-HC-ALL-CX held as follows: "The next category is Outdoor Catering Services. The Commissioner furnished a cogent justification for allowing the cenvat credit save and except for a partial disallowance in respect of the consumption of alcoholic beverages. In this regard, reference may be made to the decision of the Gujarat High Court in Commr. of C. Ex. Ahmedabad Vs. Ferromatik Milacron India Ltd. 2011 (211) STR 8 (Guj.)=2010-TIOL-851-HC-ADM-ST". 17. The only other argument raised by the Revenue is that Notification No. 3 of 2011 dated 01.03.2011, which excluded the services in the question by amendment dated 01.03.2011, is by way of substitution and therefore, it should take into effect in respect of the....