Input service definition - clarification

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Chandrashekhar Laddha

CA & CS

54 Points Posted on 23 May 2012

Dear Learned Members,

Our company is providing free canteen services to employees. These services are provided within office premises and within office hours while performing office duty.

For this purpose, Compant has availed services of a vendor who is providing its services under the category outdoor catering services.

Whether CENVAT credit can be availed on service tax paid to this vendor. Please give your valuable advice having regard to definition of input services under CENVAT credit rules.

Thanks in advance..

CA Chandrashekhar Laddha

Replies (2)

CA Ganesh Karthik

Chartered Accountant

268 Points Posted on 24 May 2012

Sir, pls refer this case law. Hope this helps you..

Commissioner of Central Excise, Mumbai vs. Bajaj Auto Ltd - Tribunal

Held, providing canteen is an integral part of manufacturing activity of the assessee and as per the decision of Maruti Suzuki Ltd. (2009 -TMI - 34348 - SUPREME COURT) is also any input which has gone into manufacturing of final product directly or indirectly is entitled for input credit. Assessee entitled for the input credit on LPG which has gone to the canteen which is as per Factory Act is necessarily required to run their manufacturing activity