2019 (9) TMI 1139

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....made from the employees towards such Canteen/Catering Services is assailed in this appeal. 2. Brief fact of the appellant case is that it is a Large Tax Payer Unit (LTU) registered with Bangalore Service Tax Authority and it received catering and house-keeping services at the factory premises for both employees of its two units namely Export Oriented Unit (EOU) and Domestic Tariff Area (DTA). DTA unit i.e., appellant had paid the amount charged by the service provider for such canteen and house-keeping services and taken credit of the service tax paid on the said services. Appellant was issued with two show cause notices for the period April 2007 to December 2009 and April 2010 to December 2010 with allegation of availment of cenvat Creit ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ttention of this Bench to the fact that EOU unit was de-bonded in 2010, in which case also appellant would have been entitled to Cevat Credit of accumulated credits available with EOU that would have put the appellant in a revenue neutral situation. On the issue of availment of credits on the portion of amount recovered from the employees, Learned Counsel for the appellant also pointed out that larger Bench of CESTAT in the case of CCE Vs. GTC Industries Ltd 2008 (12) STR 468 (T) had held it in favour of appellant but subsequently in the case of CCE Vs. UltraTech Cement Ltd 2010 (260) ELT 369 (Bom), the said larger Bench decision was overruled and therefore his argument is that in a situation where the issue remained unsettled and no finali....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... It is the settled principle of law that service tax paid on catering and house-keeping services are eligible input credits before negative list came into force, for which both in order-in-appeal and order-in-original, the credits were held to be admissible. It is undisputed fact that the appellant is a large tax payer (LTU) unit which is governed by Rule 12 A. Sub Rule 4 of Rule 12 A reeds: Explanation - For the purpose of this sub-rule 'intermediate goods' shall have the same meaning assigned to it in sub-rule (1) of rule 12BB of the Central Excise Rules 2002. A large tax payer may transfer, CENVAT credit available with one of his registered manufacturing premises or premises providing taxable service to his other such registered prem....