The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the outdoor catering services provided to the employees aims at enhancing efficiency and performance cannot be treated as personal, welfare measure or a perquisite and therefore, the same is eligible for cenvat credit.
The assessee, M/s Warburg Pincus India Pvt. Ltd was aggrieved by the order denying the Cenvat credit for renting-a-cab service during the period 2011-12 and for outdoor catering service during the period 2014-15.
The question before the two-member bench comprising Mr. Ajay Sharma, Member (Judicial) was considering a question whether the appellant is eligible to avail the credit of Rs.1,837/- which relates to outdoor catering service.
“The said service has been used by appellant for providing meals to its employees round the clock and certainly the same is going to enhance efficiency and performance of the appellant’s employees which undoubtedlyhas nexus with the output service and therefore the credit is admissible. Undisputedly the said service is used by the appellant for its business activity during office hours and not as a personal or welfare measure for its employees nor it’s a perquisite provided by the appellant to its employees. Same view has been taken by the Tribunal in the matters of M/s. Mediacom Media India Pvt. Ltd (supra) and Heartland Banglore Transcription Ser.(P) Ltd. vs. CST Bangalore; 2011(21)STR 430(Tri-Bang.), the bench observed.
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