Custom, Excise & Service Tax Tribunal
M/S Kalpataru Power Transmissions Ltd vs C.C.E. & S.T.-Ahmedabad-Iii on 31 January, 2018
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL West Zonal Bench 2nd Floor, Bahumali Building, Nr Girdharnagar Bridge, Asarwa Ahmedabad 380 004 Appeal No. : ST/10052/2018 Arising out of OIA-AHM-EXCUS-003-APP-0145-17-18 dt 27/10/2017 passed by the Commissioner ( Appeals ) Commissioner of Central Excise, Customs and Service Tax-AHMEDABAD M/s Kalpataru Power Transmissions Ltd - Appellant(s) Vs C.C.E. & S.T.-Ahmedabad-iii - Respondent(s)
Represented by For Appellant(s) : Shri S J Vyas, Advocate For Respondent(s) : Shri S Chitkara, Authorised Representative CORAM :
Dr D.M. Misra, Hon'ble Member (Judicial) Date of Hearing / Decision : 31/01/2018 ORDER No. A/10226 / 2018 Per : Dr D.M. Misra, Heard both ides.
2 . This is an appeal filed against OIA-AHM-EXCUS-003-APP-0145-17-18 dt 27/10/2017 passed by the Commissioner ( Appeals ) Commissioner of Central Excise, Customs and Service Tax-AHMEDABAD.
3. The short issue involved in the present appeal is whether the appellants are entitled to avail Cenvat Credit of Service Tax paid on Outdoor Catering Service (Canteen Service) provided to the employees pursuant to the provisions of the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996,.
4. The Ld Advocate for the appellant submits that as per the provisions of Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 the employer is required to provide canteen services to the employees and hence the Service Tax paid on Outdoor Catering Services is admissible to Cenvat Credit in view of the judgment of the Tribunal in the case of Reliance Industries Ltd vs CCE&ST, LTU, Mumbai 2016(45)STR.383 (Tri. Mum.). It is his contention that the said Canteen Services are not meant to be used by the employees for their personal use/consumption, but provided during the course of employment in compliance with the aforesaid Act.
5. The Ld AR reiterated the findings of the Ld Commissioner (Appeals). He has submitted that in view of the judgment in the case of AET Laboratories Pvt Ltd vs CCE.C&ST, Hyderabad-1 2016(42)STR.720 (Tri Bang) after amendment to the input service with effect from 1.4.2011, cenvat credit of service tax paid on Outdoor Catering services is not admissible as credit.
6. I find that the Division Bench of this Tribunal in the case of Reliance Industries Ltd (supra) considered admissibility of Cenvat Credit of Outdoor Catering Service, after amendment to the definition of input service with effect from 1.4.2011 and held that the credit is admissible if the Outdoor Catering Service is not meant to be used for personal use. In the present case, the appellant has categorically submitted that the Canteen Services has been provided to the employees in pursuance to the aforesaid Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and not for personal use.
7. In these circumstances, following the judgment of the Reliance Industries Ltd (supra) the impugned order is set aside and the appeal is allowed with consequent relief if any, as per law.
(Dictated and pronounced in the open Court) (D.M. Misra) Member (Judicial) swami 3