2017 (12) TMI 1300

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....n Deere India Pvt Ltd is against order-in-appeal no.PIII/VM/88/2011 dated 28th April 2011 of Commissioner of Central Excise (Appeals - III), Pune which has upheld the order of the lower authority denying CENVAT credit of Rs. 70,104/- on 'outdoor catering service' for the period from January 2009 to March 2009. Show cause notice was issued on 5th February 2010 originally seeking to deny CENVAT cred....

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....emise of the first appellate authority is that the cost of this service had not been borne entirely by the appellant and hence disentitle them eligibility for CENVAT credit. It is also further held that the amounts so recovered are not included in the cost of the goods on duty liability has been discharged and, hence, adjustment of credit to that extent would not meet the test of the scheme itself....

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....h of CESTAT in the case of GTC Industries Ltd.(supra) has also observed that the credit of service tax would be allowable to a manufacturer even in cases where the cost of the food is borne by the worker (see last para). That part of the observation made by the Larger Bench cannot be upheld, because, once the service tax is borne by the ultimate consumer of the service, namely the worker, the manu....