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February 2015

[2014]-TIOL-2460-CESTAT-MUM M/s Hindustan Coca Cola Beverages P. Ltd vs. CCE, Nashik

By Puloma Dalal, Jayesh Gogri, Mandar telang Chartered Accountants
Reading Time 1 mins
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The outdoor catering service used in relation to business activities and not ‘PRIMARI LY’ meant for personal use or consumption of the employee, is a valid input service.

Facts:
The Appellant has availed CENVAT Credit on outdoor catering services provided to its employees post 01/04/2011 i.e. after the insertion of the clause in the definition of input service excluding services ‘primarily’ for personal use of the employees.

Held:
The word PRIMARILY used by the legislature should be given the due effect. The outdoor catering service is used in relation to business activities for all employees in general and forms a part of cost in relation to manufacture of the final product. It was also observed that since the expenditure did not form part of the salary of the employee as a cost to the company it was not meant for personal use, the credit cannot be denied.

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